House Prices Now More Affordable in Areas of the UK Than in 2007
Property prices are in constant fluctuation, and the property market has been in particular uncertainty since the build up to and aftermath of Brexit, but the latest research from Yorkshire Building Society has revealed a shift towards more affordable housing in areas of the UK.
Scotland and the North of England are regions that have seen particular changes in prices, with the gap closing between average salary and average house prices. Figures now suggest that some areas are actually more affordable for home buyers than they were ten years ago in 2007.
Unsurprisingly, house prices in London remain out of reach for many first-time buyers. The average property price is now considered to be more than 20 times the average wage in the capital. With this in mind, property experts have predicted a bigger shift of the graduate market choosing secondary cities such as Bristol, Birmingham and Manchester to settle in and find employment.
Andrew McPhillips, the chief economist at Yorkshire Building Society, provided further details on the change:
“Across London and large swaths of southern England, which were already some of the most unaffordable parts of the country, it has become increasingly difficult for first-time buyers and those wanting to move up the housing ladder to be able to buy their first or next home.
The north of England, Wales and Scotland present a different picture entirely, with many places, such as Edinburgh, Peterborough and Birmingham, becoming more affordable than they were before the credit crunch.
While some northern cities, such as Manchester, are less affordable than they were in 2007, in much of the north of England, Scotland and Wales, the gap between earnings and house prices is about one-third of the average for London.”
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For further in-depth coverage of changes to the property market over the past 50 years, view our property timeline.