London Drops Out of UK’s Top Five Unaffordable Cities

The difficulties Londoners face getting a foot on the housing ladder is well documented, but the capital’s reputation as Britain’s least affordable place to buy may be changing, according to a new report from the Halifax.

The lockdown trend for moving to countryside and coastal towns has led to strong price growth in the provinces, while prices have remained stable in many parts of London, says the leading mortgage lender.

The study reveals Winchester to be the UK’s least affordable location in 2021. In the sought-after cathedral city, homes costs 14 times residents’ average income of £45,000.

Behind Winchester are Oxford, Truro, Bath, and Chichester, pushing London out of the top five unaffordable cities for the first time. The change follows the UK’s seismic shift to home working during the pandemic, enabling large numbers of Londoners to live further from the capital. The south west of England has been a particular hotspot for people looking for a change of lifestyle.

Central London has also seen few overseas buyers since the first lockdown. This has impacted on house prices, as has a preference among London house-hunters for larger suburban homes with gardens.

However, average house prices in the capital have still risen – by 5% in the year to June to £564,695. This is 11 times the average London salary, compared to a UK figure of eight times – 10 years ago, it was just 5.6 times the average UK income.

According to the Halifax, Derry in Northern Ireland is the UK’s most affordable city, with average prices standing at 4.7 times the average wage. Other affordable options include Carlisle (handy for the Lake District) and Bradford in West Yorkshire.

Read more about this story in the Evening Standard Homes & Property.