The scene is set for a mini property boom once Brexit is out of the way one way or another, latest house price data from Zoopla reveals.
Although London remains crazily expensive with an average house price of £483,100 which is thirteen times the capital’s average salary, the portal says the affordability gap is narrowing within the UK’s most unaffordable cities, including the capital.
Other more expensive cities where people are now more able to afford a home purchase or get on the property ladder include 12 cities where earnings are rising faster than house prices.
These include Oxford, Cambridge, Bournemouth, Southampton and Bristol, Birmingham, Leicester, Nottingham, Sheffield and Glasgow where house price inflation has begun to slow significantly.
The most notable of these is Birmingham where house prices have increased by 3.5% so far this year, half the growth rate it witnessed last year but still above the UK average of 2% year-on-year growth.
“Although the likes of London, Oxford, Cambridge are at their most affordable levels in four years, the price to earnings ratio remains well ahead of the 20-year average,” says Richard Donnell, Research and Insight Director at Zoopla (left).
“Some cities in the north of England and Scotland are more affordable now when compared to 2007 but, with more scope for future house price growth, the price to earnings ratio is set to rise slowly in the coming years.
“Lower-priced cities in northern England are actually getting less affordable than their southern counterparts when you consider that the annual percentage growth in house prices is outstripping earnings growth.”