LATEST NEWS

As Property Prices Increase, London Is No Longer The UK’s Most Expensive City

High-priced real estate and low wage increases make the UK among the most unaffordable cities to live in Europe.

By Jeff Vasishta February 28, 2017
Editorial credit: JJFarq / Shutterstock.com

So much for Brexit killing Britain’s property market. Prices in the UK continue to rise as if the vote to leave the EU never happened. In fact, London isn’t even the UK’s most expensive place to live, according to Lloyd’s Bank’s annual housing affordability analysis, which compares the cost of buying a home in an area with its average regional pay.

That honor goes to coveted university city of Oxford. It has an average house price of £385,37, which is 10.7 times the average annual gross earnings in the city—£36,033. But Oxonians’ need not think they can trade their leafy cottages retreats for fancy condos in London because the capital house prices are actually still more expensive. The same study saw Greater London named the second least affordable UK city, with the average house price 10.5 times higher than average earnings.

Related$16.5 Billion Mega Development In London Is Transforming The City

In fact, Britain’s home affordability is the worst it’s been in eight years. London also had the highest house price growth over the last five years, with average prices up by 57 percent. And let’s not forget that Londoners earn a lot more, on average, than the rest of the country, Oxford included. Overall, if you want a cheap place to live, The UK isn’t it. Cambridge, Britain’s other equally famous university city, also made the top three of most expensive cities as UK property prices continued to rise throughout 2016.

The one two punch of rising house prices and slow wage increases have put more and more Brits on a financial knife edge. In fact, research by Joseph Rowntree Foundation finds 668,000 households unable to afford essentials such as food, heating, and clothes, which underline the precarious nature of work in Britain.

RelatedWith Italian Home Prices Still Sliding, Now Could Be The Time To Buy Your Dream Getaway

One section of British society not complaining too much about the house price increase are those employed in the real estate industry, in particular, professionals such as surveyors whose pay has increased by 7.2 percent according to the Royal Institution of Chartered Surveyors. That figure exactly matches the rise in house price in 2016, as measured by the Office for National Statistics (ONS).

However, a more telling indication of the economy as a whole in the UK can be seen by the income of realtors, which actually fell by 21 percent during 2016, despite UK wages inching up last year by 2.6 percent. Compared to the increase in property prices, and rents, which are the highest in Europe, though, Britain is not a place to save money. Another reason so many Brits are praying that Brexit doesn’t actually come to fruition.

Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

ABOUT THE AUTHOR Jeff Vasishta

Jeff is a writer, husband and father but not necessarily in that order. As a music journalist he counts Prince, Beyonce and Quincy Jones amongst those he’s interviewed. He's also owned and flipped homes in Brooklyn, NJ, CT and PA.

  • AGORAFY
    Stefano Boeri, the architect mastermind behind the famous plant-covered skyscrapers, is now designing Forest Cities in Liuzhou, China. #ForestCity #China https://goo.gl/PsTUwv
  • AGORAFY
    Auction is the second scheduled in a month for a One57 unit and it could set a NYC foreclosure record. #BillionairesRow #Foreclosures https://goo.gl/NZ3zqD
  • AGORAFY
    Once a couch-surfing website, Airbnb moves on to luxury properties, further disrupting hospitality industry. #Airbnb #Luxury https://goo.gl/7TpLk6
Four Countries To Retire In With $200K In Savings—And How Much Real Estate Costs There
Ever dreamed of retiring abroad? You know, affordable healthcare, better climate, more positive news—becoming an expat seems like an enticing option, especially one you no…
While Other Real Estate Platforms Start Charging Agents $3-Per-Day Exposure Fee, Agorafy Remains Accessible To All
Real Estate searching platform are always finding news ways to diversify their revenues models. Case in point—on Tuesday July 18, Streeteasy, one of New York…
Is Real Estate Crowdfunding The Fix That Urban Housing In America Really Needs?
Saving money for a down payment? One can only hope. Most millennial in their twenties or thirties are mortified that they might never be able…
Brooklyn And Queens’ Real Estate Sub-Markets Continue Their Ascent To The New Heights
So, the sales prices in Brooklyn and Queens hit record highs. Again. Just like they did in December 2016 and at the end of this…
The Economy Of Car Services And Delivery Apps Might Be Making NYC Less Eco-Friendly
Living in an eco-friendly neighborhood is a good thing. And, as it always the case with the good things, it also costs more. High rents…
Building Communities: What The U.S. Developers Should Learn From Soho China
As our world emerges into the new period of globalization and technology, some of the most important by-products of this process are buildings that have…
Five Reasons Why All Entrepreneurs Must Keep Their Eyes On China
It is hard to overestimate the importance of Chinese influence on the modern global economy. Carving out a place in Chinese market and winning over…
Airbnb Up Their Game With A New Luxury Tier Featuring Mansions And Villas
Airbnb is about to seriously up their game. First, the company started testing a new service called Select in an attempt to push accommodation listings…