Affordability of homes in cities at worst level since 2009 - report finds
Buying a house has become less affordable in Scotland's cities, according to a new report.
Buying a house has become less affordable in Scotland's cities, according to a new report.
The average house price in cities has risen by almost 3% from ÂŁ181,061 in 2016 to ÂŁ186,002 in 2017, compared to 1% across the whole of Scotland.
As a result, average home affordability has worsened for the fourth year in a row, from 5.2 to 5.3 times gross average earnings.
The annual Bank of Scotland affordable cities review puts the affordability of homes in Scottish cities at its worst level since 2009.
Stirling remains the most affordable city for homebuyers in Scotland and has also regained the UK top spot after falling to second place last year.
At ÂŁ173,848, the average property price there is 3.7 times average gross annual earnings compared to a UK cities average of 6.9.
Edinburgh is once again Scotland's least affordable city, with an average house price of ÂŁ236,136, six times annual gross average earnings.
Aberdeen, Perth, Dundee and Inverness make up the top five least affordable cities north of the border, but the latter three plus Glasgow are included in the UK's top 20 most affordable spots.
Perth has recorded the biggest price rise of any Scottish city over the past decade with a gain of 31% compared to the UK cities average of 21%.
Graham Blair, mortgage director at Bank of Scotland, said: “Homebuyers in Scotland's cities have seen affordability levels worsen for the fourth consecutive year as average city house prices have continued to rise more steeply than average wage growth.
“However, the average price-to-earnings ratio in Scotland's cities is 5.3 - lower than the UK cities average of 6.9.
“It's little surprise that Edinburgh retains its title as Scotland's least affordable city, with Aberdeen and Perth close behind.
“Stirling now takes the top spot as the UK's most affordable city as well as Scotland's.”