Call for your free quote 0800 955 0058

Winchester is the least affordable UK city to live and work

Winchester replaces Oxford as the least affordable city to live and work with the highest average property prices now 14 times annual earnings.

Winchester is now the least affordable city in the UK to live and work replacing Oxford with average property values of £630,432 compared to average earnings of £45,059, according to Halifax.

Property values are 14 times annual earnings as prices in Winchester increased 8% in the last year with higher demand from home movers trading-up to larger properties with more space.

Last year the least affordable city was Oxford where house prices increased a modest 2% over the year to £486,928 with average earnings of £39,220 or a price to earnings ratio of 12.4.

Find out how much your monthly mortgage payments would be when buying your home in the city at this link:
Mortgage cost calculator with instant results and figures for your city property.

London outside five least affordable

For the first time in six years, London is outside the top five least affordable cities in the UK with a price earnings ratio of 11.0 based on average prices of £564,695 and earnings of £51,257.

This table from Halifax shows the top ten least affordable cities in the UK in terms of Price to Earnings or PE ratio for August 2021.
UK city House price PE ratio
Winchester £630,432 14.0
Oxford £486,928 12.4
Truro £356,788 12.1
Bath £476,470 12.1
Chichester £446,899 11.9
Cambridge £482,300 11.9
Brighton & Hove £449,243 11.6
Greater London £564,695 11.0
St Albans £604,423 10.2
Chelmsford £424,690 10.2
For people living and working cities average property prices are £287,440 with PE ratio of 8.1 times and average earnings are £35,677 which is lower than the whole of the UK at £36,600.

Winchester is the least affordable city where house prices are higher by 8% over the year at £630,432 and the most expensive in the country, compared to the average earnings of £45,059.

For last year’s leader Oxford house prices are up 2% at £486,928 with a PE ratio of 12.4 ahead of Truro and Bath with price earrings ratio of 12.1 times.

PE ratios in cities are lower than the rest of the UK at 8.5 with house prices of £327,691 and average earnings of £38,600 reflecting higher demand from home movers looking for more space after the pandemic.

For remortgage buyers the higher house prices and competitive interest rates give them the opportunity to raise capital which can be used to create more space such as an extension or loft conversion.

Affordability hit by house price rise

Average house prices in UK cities have increased by 10.3% over the past year compared to the earnings for those living and working there increasing by only 2.1%.

The highest rise is Salisbury in the South West where house prices have increased 36% from £288,692 a year ago to £392,355 with a PE ratio of 10.0 times the average annual earnings is £39,154.

Hereford in the West Midlands had house prices rise 29% to £316,929, Lancaster in the North West up 19% to £217,392 and Birmingham higher by 19% and average prices of £249,692.

These higher property values offer equity release buyers the opportunity of lump sum cash upfront at lower interest rates to purchase a new car or reduce inheritance tax owed by your beneficiaries.

For first time buyers the most affordable city is Londonderry with a PE ratio of 4.7 times followed by Carlisle and Bradford at 4.8 times and Stirling with 5.4 times and all have house prices below the UK city average of £287,440.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and raising capital. Learn more by using the property value tracker chart and equity release calculator.

Start your free remortgage quote and we can find the lowest rates and best mortgages deals at this link:
Free mortgage quote with the lowest remortgage rates for your property.

To release equity from your property for home and garden improvements, we can recommend lifetime mortgages so begin your equity release quote for the latest provider offers.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%

The latest mortgage news


16 Aug 2021

Winchester is the least affordable UK city to live and work

Winchester replaces Oxford as the least affordable city to live and work with the highest average property prices now 14 times annual earnings.

06 Aug 2021

Demand for homes falls 9pc as stamp duty holiday ends

As the initial stamp duty holiday ended in July the demand for property reduced by 9% but remains significantly up on normal market levels.

29 Jul 2021

Mortgage deals under 1pc increase with competition from lenders

The number of mortgage deals offering 1% interest or less has increased as lenders compete for new and existing borrowers.

21 Jul 2021

Savings during lockdown release you from your mortgage early

UK savings reached £200bn during lockdown and overpayments could reduce interest costs and clear your mortgage years earlier.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

  • WARNING

    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2021 © London City Mortgages.
    Website designed & developed by Spyre Media