There has been further deterioration in home affordability (HA) in Scottish cities, according to the latest Bank of Scotland "Affordable Cities" review.
The average house price in Scottish cities has risen by nearly 3% from £181,061 in 2016 to £186,002 in 2017. This rate of increase beats the whole-of-Scotland rate of only 1% and results in the average HA of Scotland’s cities deteriorating in the last year from 5.2 to 5.3 times gross average earnings, the fourth successive annual decline.
On average, HA in Scottish cities is now at its worst level since 2009 (5.7) and slightly worse than Scotland as whole (5.1).
The following table shows Scotland's five least affordable cities from the least affordable to the most affordable:
Edinbugh six times annual gross average earnings
Stirling has become the most affordable city in Scotland as well as the UK’s most affordable. Average property price here, at £173,848, is 3.7 times average gross annual earnings, much lower than the UK cities' average of 6.9. Londonderry in Northern Ireland (3.8) is the UK’s second most affordable city while the following Scottish cities also rank in the UK Top 20: Glasgow in 9th place, Inverness in 15th, Dundee in 17th and Perth in 20th.
Perth, however, has also recorded the biggest price rise of any Scottish city over the past ten years with an increase of 31% between 2007 and 2017, compared to an average of 21% for UK cities.
With house prices always on the increase in Scotland, now would be a good time to call Cailean Mortgages to discuss your financial fitness and mortgage options - 0131 510 7071.
Image of Stirling by BertieB - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=50437106