Homes in Scottish cities ‘becoming less affordable’
The average price for a city home in Scotland has increased 7 per cent on last year, according to the Bank of Scotland Affordable Cities Review.
The deterioration of home affordability for city dwellers in Scotland means the average price (£175,962) stands at 5.24 times gross annual average earnings.
Last year the average house price in Scotland was £161,463 (4.89 PE ratio) though it is still significantly below the peak of 6.12 in 2008. City living in Scotland (5.24) is more affordable than the UK city average (6.12).
Stirling remains the UK’s most affordable city for a second year, despite a deterioration in affordability over the past year. The average property price in the Scottish city of £158,645 is 3.85 times gross average annual earnings. In contrast, Edinburgh is Scotland’s least affordable city, with the average house price sitting at £216,424 which is 6.11 times the gross annual average earnings.
Aberdeen has recorded the biggest price rise of any UK city over the past decade with a gain of 88 per cent. Even over a period of five years, Aberdeen has seen a 26 per cent increase in house prices, compared to just 3 per cent in Stirling.
Nitesh Patel, housing economist at Bank of Scotland (pictured), said: “Although we have seen an 7 per cent decrease in home affordability in cities in Scotland, the average price for a city home is significantly below the peak of 2008 and is more affordable than the UK city average. As the UK’s oil and gas capital, Aberdeen has recorded the biggest gains over the past decade while Stirling has retained the title of the UK’s most affordable city for the second year in a row.”