Lloyds Bank has revealed that the average house price within UK cities has outpaced average earnings growth by 11 per cent.
The average value of a house in a UK city has risen from £180,548 in 2013, to its highest ever recorded level of £248,233 in 2018.
Meanwhile, the annual earnings in cities over the same time period has increased by 11 per cent to reach £34,366.
According to Lloyds, Oxford is the country’s least affordable city with the average house priced at £460,184, while yearly earnings are £36,430. This equates to a house costing 12.6 times the annual wage.
This is followed by Chichester where the average house is £541,891, amounting to 11.3 times the average wage year-on-year.
In contrast, the UK’s most affordable cities are Stirling and Londonderry where the average house price to earnings ratio is 4.4 for both.
Lloyds Bank mortgage products director Andrew Mason comments: “Buying a home in UK cities remains challenging, as average house prices are outpacing wage growth.
“However, the market has seen the number of first-time buyers at a high, and home owners are still attracted to cities across the UK, in spite of rising costs.
“Over the past five years, more than half of northern cities have made the UK top 10 in house price growth, whereas over a longer period, southern cities dominate.”