Brighton is the least affordable town in the UK for first time buyers, whereas Belfast & Hull are amongst the most affordable, according to new analysis by job and property search engine Adzuna.co.uk..
The research shows that almost 80% of homes in Belfast are within financial reach for first-time buyers on average local incomes. Oxford, Chelmsford, Cambridge and London all ranked amongst the most unaffordable places to get a foot on the property ladder, as wages stagnate and property prices soar across Britain.
Adzuna calculates the affordability of areas by looking at average salaries for the top 50 cities in the UK using their comprehensive search index of over 800,000 job ads. This data is compared to property asking prices and typical mortgage multiples for both single applicants and couples across the UK to produce an “Affordability Index” for house hunters.
Pockets Of Opportunity For First Time Buyers
The study reveals that first-time buyers should head to Northern locations like Sunderland, Salford and Hull, where average property prices at £136,095 are only 2.5 times average earnings for the area. Bargain hunters should also set their sights on Midlands cities like Stoke-on-Trent, Nottingham and Derby. House hunters in the South of England shouldn’t feel too despondent: Portsmouth, Plymouth and Southampton are amongst the most affordable cities in the South for first-time buyers this April with up to a third of homes still falling within financial reach.
Brighton, Oxford & Chelmsford Locals Struggle The Most
Brighton, Oxford & Chelmsford are the most unaffordable towns and cities in the UK for first-time purchasers. A typical home in Brighton now sells for over 7 times the average Brightonian couple’s earnings, at over £400,000. First time buyers working in Brighton looking for cheaper options should head to Crawley (22 miles) or Worthing (13 miles) where the average 2 bedroom home is on average 22% cheaper.
London Prices Skyrocket By 15% As Wages Stagnate
Boasting luxury homes valued at up to £50 million, London has seen soaring property prices in the last 12 months, with house values rising 15% year on year. With wages in the capital stagnating and tracking below inflation, properties in London have become increasingly unaffordable for locals with a staggering 91% of homes in the capital completely out of financial reach.
Andrew Hunter, Co-Founder of Adzuna, said “It’s fascinating to get such a clear view of the differences in home affordability across the UK by combining data from our property and jobs search engines. Despite government schemes like ‘Help to Buy’, it’s clear that many parts of the country are on the verge of an affordability crisis, with young, first time buyers being almost completely priced out of the market.”
Top 10 Most Affordable Cities for First Time Buyers
Name of City
% of homes within budget* (1-bed price vs. single salary ratio**)
Belfast
79.17%
2.78
Hull
74.51%
2.74
Sunderland
67.98%
3.35
Glasgow
68.89%
2.51
Salford
66.54%
2.88
Stoke-on-Trent
60.69%
2.89
Derby
59.65%
2.79
Manchester
58.57%
3.48
Bradford
58.18%
2.76
Nottingham
57.13%
3.09
Top 10 Least Affordable Cities for First Time Buyers
Name of City
% of homes within budget* (1-bed price vs. single salary ratio**)
Brighton
1.11%
6.45
Oxford
1.93%
5.90
Chelmsford
2.70%
5.98
Cambridge
8.53%
5.59
London
8.79%
9.32
Exeter
9.47%
4.52
Guildford
10.19%
5.84
Winchester
10.90%
4.47
Reading
14.88%
4.18
Chichester
15.70%
5.78
Top 10 Most Affordable Cities for All Homebuyers
Name of City
% of homes within budget* - Average asking price vs. salary (couple)**
Belfast
93.06%
1.77
Hull
86.51%
2.53
Salford
85.55%
2.57
Sunderland
82.51%
3.50
Bradford
80.47%
2.73
Glasgow
80.03%
2.47
Middlesbrough
77.82%
3.02
Manchester
77.64%
2.93
Durham
77.59%
2.94
Birmingham
76.02%
3.
Top 10 Least Affordable Cities for All Homebuyers
Name of City
% of homes within budget * - Average asking price vs. salary (couple)**
Oxford
12.49%
7.12
Guildford
14.40%
8.86
London
16.14%
8.49
Brighton
17.98%
7.26
Winchester
19.69%
7.23
Chelmsford
24.74%
6.19
Exeter
25.03%
5.90
Cambridge
25.20%
5.45
Ipswich
26.40%
4.95
Reading
28.80%
6.5
* % of properties (un)able to purchase is based on an assumed joint mortgage multiple of 4.1X and 10% deposit.
** House price to salary ratios, and affordability for all homebuyers were calculated by comparing average asking prices and average income for a couple. For first-time buyers, single salaries were compared to 1-bed properties.