Almost all UK cities are unaffordable for solo buyers, and three in 10 are too expensive for couples.
That’s according to research from Mojo Mortgages.
The broker looked at average mortgage-to-salary ratios across the UK and compared them to the typical four-and-a-half times mortgage-to-salary ratio. This is a rough guide to the maximum mortgage that lenders offer to some borrowers (although it can vary depending on your income and outgoings).
Mojo found that 24 out of 80 cities (30%) exceed the four-and-a-half times income ratio. And 77 of 80 cities (96%) are unaffordable for solo buyers on an average salary.
Where is most unaffordable?
Bath has the highest borrowing requirement. A person buying a home alone would need to borrow 15-and-a-half times their salary, while a couple would still face a ratio of 7.7 times.
Below are the 10 most unaffordable cities with the typical income multiple required for solo and joint buyers (assuming a 15% deposit):
1. Bath – 15.54 (solo) and 7.77 (joint)
2. City of London – 15.36 (solo) and 7.68 (joint)
3. Woking – 14.7 (solo) and 7.35 (joint)
4. Cambridge – 14.46 (solo) and 7.23 (joint)
5. Watford – 14.16 (solo) and 7.08 (joint)
6. Oxford – 13.85 (solo) and 6.92 (joint)
7. Brighton – 13.72 (solo) and 6.86 (joint)
8. Worthing – 12.77 (solo) and 6.39 (joint)
9. Cheltenham – 12 (solo) and six (joint)
10. Southend-on-Sea – 11.63 (solo) and 5.81 (joint)
Affordable hotspots
At the other end of the scale, Middlesbrough is the most affordable city for mortgage lending. Solo mortgage borrowers in the city would only need to borrow 3.7 times their salary, and couples just 1.8 times.
Hartlepool has a mortgage-to-salary ratio of 4.04 for solo homebuyers and 2.02 for couples, with an average house price of £118,987.
In Hull, single buyers face a mortgage-to-salary ratio of 4.37, while couples need 2.19 times their combined salaries. The average house price is £143,068 and the average salary is £27,804.
