The results may surprise you.
Finding an affordable place to live in the UK is the ultimate mission. And with UK house prices increasing at a far faster rate than our salaries – with the average British home now costing £261,221 – it’s only getting harder.
In many cases, factors such as location of job, family and friends will limit people to buying in certain areas. But if you’ve got a bit more freedom and simply want to find a cheap place to live in the UK, you’ll want to take a close look at Halfiax’s new index of the most – and least – affordable cities to buy in.
After comparing each city’s average salary to its average house price in 2021, Halifax has calculated a price-to-earnings ratio, identifying where your income will go furthest. The average price-to-earnings ratio in cities across the country is 8.1, having increased from 5.6 in 2013, but there are certain areas where it’s much higher – and others where it’s far lower.
While you might assume that London is the least affordable place to live in the UK, it’s actually Winchester in Hampshire that’s been rated as most expensive in comparison to the average salary in the area. In fact, London doesn’t even make it into the top five least affordable UK cities. On the other end of the scale, Derry in Northern Ireland has been highlighted as the most affordable city when you weigh up wage and house prices. So without further ado, here are the full lists…
The UK’s most affordable cities to live in 2021:
1. Derry, Northern Ireland
Average house price: £155,917
Average salary: £33,138
Price-to-earnings ratio: 4.7
Derry/Londonderry
=2. Carlisle, North
Average house price: £163,232
Average salary: £34,087
Price-to-earnings ratio: 4.8
=2. Bradford, Yorkshire and the Humber
Average house price: £164,410
Average salary: £34,219
Price-to-earnings ratio: 4.8
=4. Stirling, Scotland
Average house price: £208,927
Average salary: £38,744
Price-to-earnings ratio: 5.4
=4. Aberdeen, Scotland
Average house price: £205,199
Average salary: £38,016
Price-to-earnings ratio: 5.4
Aberdeen
=4. Glasgow, Scotland
Average house price: £196,625
Average salary: £36,205
Price-to-earnings ratio: 5.4
7. Perth, Scotland
Average house price: £203,229
Average salary: £36,700
Price-to-earnings ratio: 5.5
=8. Inverness, Scotland
Average house price: £191,840
Average salary: £34,373
Price-to-earnings ratio: 5.6
=8. Hull, Yorkshire and the Humber
Average house price: £156,424
Average salary: £27,730
Price-to-earnings ratio: 5.6
Hull
10. Dundee, Scotland
Average house price: £181,150
Average salary: £31,344
Price-to-earnings ratio: 5.8
11. Sunderland, North
Average house price: £179,567
Average salary: £29,745
Price-to-earnings ratio: 6.0
12. Lisburn, Northern Ireland
Average house price: £203,386
Average salary: £33,138
Price-to-earnings ratio: 6.1
=13. Salford, North West
Average house price: £211,903
Average salary: £34,444
Price-to-earnings ratio: 6.2
=13. Durham, North
Average house price: £196,274
Average salary: £31,762
Price-to-earnings ratio: 6.2
Durham
=13. Liverpool, North West
Average house price: £215,741
Average salary: £34,911
Price-to-earnings ratio: 6.2
=13. Belfast, Northern Ireland
Average house price: £205,228
Average salary: £33,138
Price-to-earnings ratio: 6.2
=13. Lancaster, North West
Average house price: £217,392
Average salary: £35,004
Price-to-earnings ratio: 6.2
18. Newcastle-upon-Tyne, North
Average house price: £229,434
Average salary: £36,212
Price-to-earnings ratio: 6.3
Newcastle
19. Stoke-on-Trent, West Midlands
Average house price: £200,161
Average salary: £30,698
Price-to-earnings ratio: 6.5
20. Hereford, West Midlands
Average house price: £316,929
Average salary: £48,048
Price-to-earnings ratio: 6.6
Hereford
The UK’s least affordable cities to live in 2021:
1. Winchester, South East
Average house price: £630,432
Average salary: £45,059
Price-to-earnings ratio: 14.0
Winchester
2. Oxford, South East
Average house price: £486,928
Average salary: £39,220
Price-to-earnings ratio: 12.4
=3. Truro, South West
Average house price: £356,788
Average salary: £29,558
Price-to-earnings ratio: 12.1
=3. Bath, South West
Average house price: £476,470
Average salary: £39,508
Price-to-earnings ratio: 12.1
5. Chichester, South East
Average house price: £446,899
Average salary: £37,352
Price-to-earnings ratio: 10.6
Chichester
6. Cambridge, East Anglia
Average house price: £482,300
Average salary: £40,492
Price-to-earnings ratio: 11.9
7. Brighton and Hove, South East
Average house price: £449,243
Average salary: £38,737
Price-to-earnings ratio: 11.6
8. London, South East
Average house price: £564,695
Average salary: £51,257
Price-to-earnings ratio: 11.0
=9. St Albans, South East
Average house price: £604,423
Average salary: £59,391
Price-to-earnings ratio: 10.2
St Albans
=9. Chelmsford, South East
Average house price: £424,690
Average salary: £41,781
Price-to-earnings ratio: 10.2
11. Salisbury, South West
Average house price: £392,355
Average salary: £39,154
Price-to-earnings ratio: 10.0
12. Exeter, South West
Average house price: £323,554
Average salary: £32,635
Price-to-earnings ratio: 9.9
Exeter
13. Leicester, East Midlands
Average house price: £279,080
Average salary: £28,725
Price-to-earnings ratio: 9.7
14. Norwich, East Anglia
Average house price: £306,946
Average salary: £32,632
Price-to-earnings ratio: 9.4
15. Bristol, South West
Average house price: £346,902
Average salary: £37,357
Price-to-earnings ratio: 9.3
=16. Southampton, South East
Average house price: £310,435
Average salary: £34,429
Price-to-earnings ratio: 9.0
=16. Canterbury, South East
Average house price: £365,168
Average salary: £40,565
Price-to-earnings ratio: 9.0
Canterbury
=16. Gloucester, South West
Average house price: £287,600
Average salary: £31,987
Price-to-earnings ratio: 9.0
19. Worcester, West Midlands
Average house price: £303,132
Average salary: £34,389
Price-to-earnings ratio: 8.8
20. Cardiff, Wales
Average house price: £276,851
Average salary: £31,946
Price-to-earnings ratio: 8.7
Cardiff
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