BUYING a house in Scotland’s cities has become less affordable with Edinburgh topping the list as the most expensive and Stirling coming in as the most affordable place to set up home.
The annual Bank of Scotland affordable cities review puts the affordability of homes in Scottish cities at its worst level since 2009 and shows that the average house price in cities has risen by almost 3 per cent from £181,061 in 2016 to £186,002 in 2017, compared to 1 per cent 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, but Stirling remains the most affordable city for homebuyers with the city regaining the UK top spot after falling to second place last year.
At £173,848, the average property price in Stirling is 3.7 times average gross annual earnings compared to a UK cities average of 6.9, however, Edinburgh is once again Scotland’s least affordable city, with an average house price of £236,136, 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 per cent compared to the UK cities average of 21 per cent 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.
“The average price-to-earnings ratio in Scotland’s cities is 5.3. 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.”
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