According to the latest House Price Index figures from Zoopla (to the end of July), house prices in 12 of the UK’s major cities are rising slower than average earnings growth.
Although the house price-to-earnings ratio has fallen from a high of 14.1 to 13.1 in London it is still a stark contrast to the figures here in Glasgow.
Glasgow is currently the most affordable place to buy property with average house prices at just 3.1 times the average wage.
In many areas including Oxford, Cambridge, London, Southampton, Bournemouth and Bristol, the ratios have fallen back to the levels that were seen in 2015.
At present, the average home in a major UK city currently costs 6.7 times typical earnings – which slightly up on the 20-year average of 5.8.
Northern cities remain affordable
Although the house price-to-earnings ratios in southern areas is more than 10 in some places, cities in the north are the most affordable with Glasgow topping the chart at just 3.7 times the average earnings with an average house price of £124,800.
Liverpool, Newcastle and Sheffield are next with house price-to-earnings ratios of 4.4, 4.5 and 4.9.
House price gains
Glasgow posted house price gains of 1.9% in the 12 months to the end of July. This slow down in activity is due to Brexit uncertainty and this looks to continue until there is greater clarity over the terms on which we will leave the EU in October.
Vanilla Square – highly personal sales! At Vanilla Square you will always be liaising with one of our business partners, which makes our service that much more responsible and approachable. When you instruct us, your property will reach a wider audience as we are one of the few agents who are present on all the major property portals to offer sellers maximum exposure. If you’re looking to buy or sell your property, or you’re simply considering the idea, contact us by calling 0141 229 0210 or pop into our new office at 711 Great Western Road. One of our partners will be delighted to help and provide you with impartial, expert advice.