Aberdeen has been named the most affordable city for single individuals seeking to purchase a home in Great Britain. The Scottish city offers one- or two-bedroom homes at an average price of just under £120,000. In contrast, house prices in southern England have experienced a modest increase of nearly 1.5% over the past year, excluding London. While first-time buyers generally spend about five times their annual earnings on a home, recent trends indicate a "modest improvement" in affordability across Great Britain in 2024.
This improvement is attributed to wage growth outpacing the rise in house prices and a slight reduction in mortgage costs. Nationwide, the average property price increased by 0.7% in January, reaching a new high of £299,138. In Wales, Blaenau Gwent boasts the most affordable housing, with average prices at £112,090, while Monmouthshire stands as the least affordable with homes averaging £240,900.
Several English cities have shown significant progress in affordability, including Bristol, Oxford, Portsmouth, and Cambridge. Liverpool has been identified as the most affordable city for single homebuyers in England, with average mortgage payments amounting to £540 or 18% of monthly salaries. Meanwhile, Edinburgh holds the title for the priciest city in Scotland, despite improved affordability over the past year.
In England, Kensington and Chelsea remain the least affordable borough, where property prices average £925,870. Conversely, Havering in East London presents a different financial scenario with average monthly mortgage payments of £1,100, accounting for 29% of average salaries.