London affordability reaches a six-year high
Tue 17 Aug 2021
Paul Bennett, Director
When you think about the most expensive UK cities in which to buy a property, you’d be forgiven for instantly thinking that London would be in the top three – if not the most expensive city in which to own a home. Well, it is time to rethink your assumption.
A new report by the Halifax has blown the notion that London is out of reach wide open. Its new top 20 of the least affordable UK cities in 2021 is based on affordability, calculated by a house price-to-earnings ratio. For the first time in six years, London has dropped out of the top 5 least affordable cities.
The number one spot is now taken by Winchester, where the average house price is £630,432 – a price that is 14 times the average earnings. The rest of the top 5 comprises Oxford (£486,928 and 12.4 times the average earnings; Truro (£356,788 and 12.1 times the average earnings); Bath (£476,470, and 12.1 times the average earnings) and Chichester (£446,899 and 10.6 times the average earnings).
London has actually been demoted to 8th place in the top 20 (£564,695 and 11 times the average earnings, behind Cambridge and Brighton & Hove, thanks to plateauing house prices in the capital and surging values in cities across the South and the South East of the UK.
With Winchester leapfrogging over London when it comes to affordability, we find ourselves in a strange situation where moving out of the capital may prove too expensive. What presents itself is an exceptional opportunity to get on the London property ladder before the inevitable happens and prices start rising more substantially.
Here are three London properties for sale with Behr & Butchoff when the asking price is well below the average seen in Winchester:-
Ormonde Terrace is where you’ll find this neat one-bedroom, split-level apartment with an open plan kitchen/living room. The asking price of £499,995 buys an exceptional location directly opposite Primrose Hill Park and immediately adjacent to Regent's Park.
Grove End Road is home to some of NW8’s smartest mansion blocks and also this one-bedroom, third floor apartment in Grove End House. The purchaser will benefit from a porter, a communal garden and a lift, with an asking price of £499,950.
Abercorn Place offers exceptional value-for-money, with a studio apartment advertised for £299,950 - less than the average price in the top 12 least affordable UK cities. Although bijou, there is a porter and rooftop views, plus St. John’s Wood High Street is a stroll away.
If you are looking to transition from renter status to London homeowner and would like assistance with your property search, please contact the Behr & Butchoff team. Do you have a property to sell? We can provide you with a fast valuation and professional advice.