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Property News > Oxford is the Least Affordable City in the UK According to Research
Oxford is the Least Affordable City in the UK According to Research
When looking for an affordable home, one of the places not to look is Oxford, based on new research. The report also revealed that the affordability around the UK has worsened with the ratio between house prices and affordability increasing from 5.6 in 2012, to seven in 2017.Looking at what cities were the least affordable, it was found that Oxford, Cambridge, Greater London, Brighton, Hove and Bath where high on the list. Cambridge as an example recorded a house price increase of 47% in the last 10 years.With the Government looking to make buying a house more affordable, the fact that house prices in UK cities has risen by 36% will be bad news. In money terms this is a rise from £171,745 in 2012 to around £232,945 in 2017. This data is based on the statistics pulled from the Lloyds Bank’s Affordable Cities Review.While high house prices can be good news for the owners, this is bad for people looking to buy a home. This is especially the case when the annual earnings in an average city has only risen by nine percent to £33,420. What this means is that the average ratio of average house price to earnings is 7.5, which is the worst seen since 2007.Oxford was the city pointed out as the least affordable and this is because the average house price is £429,775, which is around 11.5 times the annual average earnings of prospective buyers. More cities that are making it into the top ten list of least affordable homes are Truro and Exeter where the ratio was around 9.3.With London being one of the places people gravitate to when looking for jobs, it comes as no surprise that the Capital is also marked out at one of the least affordable. London also has the highest price growth when it comes to properties rising around 61% from £298,940 in 2012 to £480,000 in 2017. Coventry also saw a big increase at 55%, coming in second to London, followed by Cambridge, Ely and Lisburn which were all at 54%.With the Government looking to build more affordable homes, especially for first-time buyers, it will be interesting to see what effect these new homes will have on house prices. Obviously for those who are looking to sell their properties, a dip in price won’t be seen as a good thing, so there has to be a balance between affordability and profit.What the affordability of homes reveals also is that there is a clear North-South divide, with Southern locations being the least affordable, and the North having much more affordable city based housing.