Where is the most affordable place to buy a UK home?

Published 23 January 2012

A widening north versus south divide in property prices, is supported by the fact that London is by far the most expensive place to buy a home in the UK. But where is the most affordable?

According to the Bank of Scotland, East Ayrshire, where the average price of a home stands at £121,831, is the most affordable local authority district in the UK, with typical mortgage payments accounting for 15.7% of average local earnings. It was followed closely by West Dunbartonshire and North Ayrshire (both 16.2%).

Edinburgh is the least affordable area of Scotland, with average mortgage payments on a new loan accounting for 26.2% of average local earnings.

Aberdeenshire (25.9%), Perth & Kinross (25.6%) and Highland (25.5%) were the next least affordable.

"Mortgage payments in Scotland account for only a fifth of disposable earnings, compared to over a quarter for the UK as a whole,” said Bank of Scotland housing economist Nitesh Patel.

She added: "The falls in house prices and cuts in mortgage rates in the last few years have resulted in a significant improvement in housing affordability for those able to raise the necessary deposit to enter the market."

"The marked improvement in affordability was a key factor supporting housing demand in 2011. The prospect of an exceptionally low Bank of England Bank Rate over the foreseeable future should maintain affordability at favourable levels in 2012."