Housing Affordability Continues To Fall In Scotland


Data from the Bank of Scotland Affordable Cities Review shows affordability in Scottish cities is now at its lowest level since 2009. The rising price of homes in has led to a further deterioration in affordability with average values up 3% over 2015 values.

The result is an average affordability that has gone from 5.25 to 5.36 times a person’s gross average annual earnings in the last 12 months.

Although affordability is now at its lowest level since 2009, average house values are still 12% lower than the 2008 peak of 6.12 times earnings at the height of the last housing market boom.

Since the boom, a 10% increase in gross average annual earnings and an average price decline of 3% have combined for an overall improvement in affordability from its low point in 2008.

Edinburgh is currently Scotland’s least affordable city with an average house price of 6.12 times the gross average earnings, mirroring 2008’s national average.

Inverness at 6.03, Aberdeen at 5.72, Dundee at 5.38 and Perth at 5.24 round out the top five least affordable cities in Scotland. Stirling is the most affordable Scottish city with an average of 4.11 times the gross average annual earnings.


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