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.
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 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.
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.”