The most and least affordable places to live in the UK
Lauren Weymouth
04 May 2017
How pricey is property where you live?
Analysis by loveMONEY.com has revealed the most and least affordable places to live in the UK. Shockingly, house prices are more than 10 times the average salary in some parts of the UK. But what areas of the UK come out on top?
Let the countdown begin
Using figures from the Office for National Statistics (ONS), we took the average house price in every UK region and divided it by the average salary per region in order to calculate an affordability value. The lower the value, the higher the affordability gap. Read on to find out how your region fared.
The UK’s least affordable region: London
Unsurprisingly, London is the most unaffordable place to live in the UK. As a region, the capital is experiencing soaring house prices that are drastically overtaking relatively average salaries, leaving homeowners in desperate need of huge deposits and paying hefty mortgages.
Affordability value: 7.14%
The average house price in London is around £488,000 (although many would be lucky to find a property below this price), and the average salary stands at just £34,881. This means those living and working in London earn just 7.14% of the amount needed to buy a house.
11th most affordable region: south-east England
The second most unaffordable place to live in the UK is also in the south of England. Home to cities such as Oxford, Canterbury and Brighton, the south east is the perfect place for people to live and commute into London. However, this comes at a price.
Affordability value: 9.4%
Being so close to London, property prices in the south east average £313,000. This, coupled with an average salary of just £29,432, means homeowners earn just 9.4% of the amount needed to buy a home. In other words, a house costs 14 times more than a typical person earns.
10th most affordable region: East of England
The east of England also contains many towns and cities that are within commuting distance of the capital. Picturesque places such as St. Albans and Cambridge, with direct routes to London, have ramped up the cost of living across the region.
Affordability value: 9.92%
The average house price across the region stands at £277,000, while the average salary falls at just under 10% of this figure at £27,497.
9th most affordable region: south-west England
Home to Bristol, now one of the most expensive cities to live in the UK, it comes as no surprise that the south west of England is so high up this list.
Affordability value: 10.9%
House prices in the region are an average £241,000, while the average salary hovers around £26,260, meaning homeowners will need to fork out over 10 times their salary for a home.
8th most affordable region: East Midlands
Over the north/south divide line, there is a noticeable difference in affordability. The East Midlands – home to Nottingham, Leicester, Derby and Loughborough – is markedly cheaper.
Affordability value: 14.35%
Affordability levels jump by 4% in the East Midlands, where house prices sit at an average of £175,000 and the average salary stands at £25,126. Homeowners’ salaries account for 14.35% of the average house price in this area.
7th most affordable region: West Midlands
On the west side of the Midlands, housing is even more affordable. Cities and towns located here – such as Birmingham, Walsall, West Bromwich and Wolverhampton – are all among the UK’s most affordable.
Affordability value: 14.65%
The average house price in this region stands at £181,000, while the average salary is £26,520. Interestingly, both house prices and salaries are marginally higher in the West Midlands than its eastern counterpart, yet so is its affordability value. Homeowners’ salaries account for 0.30% more towards the cost of a home than in the East Midlands.
6th most affordable region: Yorkshire and the Humber
As we head to the north of the UK, affordability values head north too. Despite being home to some of the country’s most beautiful landscapes, the historic city of York, the Peak District, Harrogate, Leeds and Sheffield, Yorkshire remains one of the UK’s most affordable areas to live.
Affordability value: 17.16%
Those looking to buy a home can expect to pay around £151,000 for a property. With an average salary of £25,911, earnings amount to some 17.16% of the price of the average home.
5th most affordable region: north-west England
Also championing the affordability of the north is the north west, which is home to Manchester, Liverpool, Chester, Blackpool and Lancaster.
Affordability value: 17.32%
House prices also average £151,000 in the north west, but the average salary sits at £26,166 – marginally higher than Yorkshire. This means the affordability value is also slightly higher here, at 17.32%
4th most affordable region: Wales
If the better healthcare wasn’t enough to entice you to Wales already, then the cost of living could do. Beyond the Severn Bridge and through the valleys, life is considerably more affordable.
Affordability value: 17.53%
The average property costs buyers just £146,000 in Wales, while the average salary comes in at £25,604. The result? Earnings account for almost 18% of the cost of a house.
3rd most affordable region: Scotland
Home to the beautiful city of Edinburgh, the historic county of Perthshire, the Highlands and the River Ness, Scotland might not have great weather, but it certainly knows how to do a picturesque setting.
Affordability value: 19.85%
Better than its idyllic scenery? Its property affordability. The average salary in the most northern part of the UK stands at £27,820 – 19.85% of the average house price of £143,000.
2nd most affordable region: north-east England
The second most affordable place to live in the UK is the north east of England. Home to Newcastle, Sunderland, Middlesbrough and Durham, the region only has a population of just under three million, and its residents benefit from more affordable property.
Affordability value: 20.55%
People in the north east earn, on average, £25,688 a year, which accounts for 20.55% of the average house price of £125,000.
The UK’s most affordable region: Northern Ireland
The most affordable place to live in the UK, Northern Ireland boasts Norman castles, glacial valleys and mountains. And its houses are cheap and the cost of living remains low.
Affordability value: 20.76%
So how much does it cost to live in the province? With the average salary standing at £25,750, it amounts to just over a fifth (20.76%) of the average house price of £124,000. This means the difference between the cost of living in Northern Ireland and London, the most expensive region, is a staggering 13%.
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