© john finney photographyWe've analysed average house prices against the average salary to find the most affordable locations to buy property in this year.
Over the long, long months of lockdown (and semi-lockdown) in the UK over the last 10 months, many of us have re-assessed how we feel about our lifestyles, and our homes in particular.
Maybe we realised they just needed a new lick of paint or perhaps we had a bigger epiphany, like considering a move to the countryside. And when it comes to moving, money plays a big role - where can we afford to live the best life possible?
It's not always easy to tell and knowing where the most affordable areas to buy a property often leaves prospective buyers scratching their heads - until now. Compare the Market has analysed average house prices against the average salary for every local authority in the UK, to find the most and least affordable locations to buy property in this year.
Copeland is officially the most affordable place to buy in the UK, with the average house price just over 2.6 times the average salary in the area. Located on the west coast of Cumbria, Copeland boasts endless rolling landscapes and freshwater lakes. With the pandemic driving more buyers out of cities and into the countryside, this makes buying in Copeland even more desirable.
© john finney photographyCopeland in Cumbria
Copeland isn't the only location in Cumbria to appear in the top 10 most affordable places to live; Barrow-in-Furness came in joint second, tied with East Ayreshire and Invercylde, both in Scotland. The average house price in these three local authorities was uncovered to be only just over three times the average salary.
With most mortgage lenders using an income multiple of 4-4.5 times your salary, the top ten most affordable areas to live in the UK all fall comfortably within this bracket:
- Copeland: average house price £117,401
- East Ayrshire: average house price £94,827
- Barrow-in-Furness: average house price £114,608
- Inverclyde: average house price £99,103
- County Durham: average house price £96,279
- Burnley: average house price £86,074
- Blaenau Gwent: average house price £98,745
- North Lanarkshire: average house price £111,268
- West Dunbartonshire: average house price £111,926
- North Ayrshire: average house price £104,558
On the other end of the scale, it's no surprise to see that the top ten least affordable places to buy a house in the UK include nine local authorities in London.
Kensington and Chelsea is officially the least affordable place to buy a home in the UK, with an average house price of 42.7 times the average local salary! That's 62% higher than the next closest local authority; the City of Westminster where the average house price is 26.4 times the local average salary.
Top 10 least affordable places to live in the UK all have house prices over 17 times the average salary in the local area, putting them out of reach for the average homebuyer:The only local authority not in London which made the top 10 least affordable places to live is Chiltern. Located in Buckinghamshire - the home to more National Trust properties than anywhere else in the UK - and easily commutable to the capital, Chiltern has an average house price of 17.2 times the average local salary. This places Chiltern as the ninth least affordable place to buy in the UK, tied with Barnet in London.
However, the difference between house price and salary has decreased in Chiltern over the last year, down from 18.2 times the average salary.
The biggest positive difference in the past year was seen in the City of London, where average salary to house price narrowed. Nevertheless, buyers are still looking at house prices 14.5x the local average salary.
The data also uncovered the biggest negative changes, showing the locations which are becoming increasingly less affordable. The top five locations which became more unaffordable in the past year were revealed to be Kensington and Chelsea, City of Westminster, Hackney, Camden and the commuter city of Tunbridge Wells.
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