London is traditionally known as the most expensive city in the UK and among the costliest in the world. More and more singles and couples trying to get on the property ladder are choosing to move away from the Capital to more affordable locations.
Affluent Walton-on-Thames attracts professionals who commute
There are many areas of the UK where an average wage won’t allow you to even come close to making the average house price an affordable reality, according to research by Pink Storage using Payscale and Rightmove data. This took into consideration the average cost of a house in a total of 275 towns and cities throughout the UK. The average income was then calculated and this number used to determine how much a couple or family could borrow. The survey then weighed up whether or not these areas would be affordable.
Joining London on the list of least affordable places are Walton-on-Thames, St Albans and Winchester. Woking and Altrincham also appear on the list, with prices rising. In the affluent area of Walton-On-Thames, the average property costs around £747,070. Situated on the south bank of the River Thames, the town is one of the most sought-after in Surrey and is popular with London professionals and families who want good schools for their children.
St Albans is second worst place for affordability in the UK
Another town proving problematic for new homebuyers is St Albans. According to statistics, this is the second worst location for affordability in the UK. The average home in St Albans costs around £636,707, and with the average family income of £58,000, couples would only be able to borrow a total of £261,000, which leaves a difference of £312,036.
Northern Ireland and Scotland enjoy low house prices
Northern Ireland, Scotland and the North-West of England enjoy the lowest house prices in the UK. Blyth in Northumberland, Gateshead, Londonderry, Aberdeen, Glenrothes and Bootle are also among the more affordable places in the UK. In Londonderry, Northern Ireland, properties can be obtained for as little as £100,000. However, house prices in the city increased by over 20 per cent during the second quarter of the year, according to the Ulster University House Price Index, taking the average price to £147,261. Other towns and cities on the low-price list include Glenrothes in Fife, Bootle, Barrow-in-Furness, Greenock and Washington, Tyne and Wear.
Is there some hope for homebuyers?
A small glimmer of hope, however, is that the Bank of England base rate is likely to peak in 2023 before dropping towards the end of the year or during the first part of 2024, which will ultimately help to lower mortgage costs for those struggling. For those moving out from the Capital and looking for the best conveyancing solicitors in Guildford and elsewhere, a concierge service such as Sam Conveyancing can provide access to reputable professionals to handle this essential element of the home buying process.
According to Reuters the surge in property prices will come to a halt next year as the cost-of-living crisis takes hold and rising energy and fuel prices make their presence felt. Borrowing costs will put the brakes on this buoyant market which has been a sellers’ market for years, according to the Reuters review.
Returning to the affordability research from self-storage company, Pink Storage, a spokesperson said with the rise in house prices and the cost-of-living crisis, it’s getting more and more difficult for many people to get on the property ladder. Perhaps wider factors will serve to provide some degree of correction.
