Aberdeen named most affordable city to own a home
- Average prices in the Scottish city were £139,551 in May 2023.
- The study looked at the total cost of the mortgage, utilities, and council tax.
Aberdeen has been ranked as the cheapest city to own a home and the average cost of a mortgage, utilities and council taxes is only 37 percent of the median monthly wage.
According to a study by the mortgage broker L&C Mortgages, the median house price in the Scottish city was £139,551 in May 2023, meaning that a mortgage taken out with a 10% deposit and repaid over 25 years at 4 .5 percent interest would cost a total of £209,349.
This equates to a monthly mortgage payment of £698, which increases to £988 when combined with utilities and council tax. This equates to 37 per cent of the median wage in the area, which is £2,696.
A new study by L&C Mortgages reveals that Aberdeen is the cheapest city to own a house
The study revealed the cheapest British cities to own a home based on the average cost of utilities, council tax and a 4.5 per cent interest rate mortgage repaid over 25 years, compared to the median wage. at each location.
Dundee, Kington-Upon-Hull, Glasgow and Durham rounded out the five least expensive cities to own a home.
In second place was Dundee, which had a median house price of £142,777 as of May 2023. Paid off over 25 years at 4.5 per cent interest, the total cost of the mortgage is £214,189.
This means that the monthly mortgage payment, utilities and council tax would cost £1,049, which is 42 per cent of the median wage of £2,524.
In terms of expensive housing, Westminster took the top prize and St Albans, Chichester, Winchester and Cambridge all made the top five.
The average cost of a house in Westminster is £921,609, with a total mortgage cost over 25 years of 4.5 per cent, or £1,382,562.
The cost of a typical home is now 6.7 times the median income, according to independent research by Halifax, up from a high of 7.3 times last summer.
However, higher mortgage rates have made homeownership less affordable.
Aberdeen, Dundee, Kington-Upon-Hull, Glasgow and Durham are among the five least expensive cities to own a home.
In terms of expensive housing, Westminster took the top prize and St Albans, Chichester, Winchester and Cambridge all made the top five.
A spokesperson for L&C Mortgages said: “During the first six months of 2023, 291,568 mortgages were approved across Britain. This has allowed first-time buyers and experienced homeowners alike to invest in property in a place they will be happy to call home.
‘This study reveals the cheapest cities to own a home in across the country. The research, which has considered monthly mortgage rates along with utility and municipal taxes, shows that the least expensive cities are predominantly located in the northern regions of the country.
‘Scotland, for example, is listed three times in the top five cheapest cities to own a home. Aberdeen ranks first among homeowners who pay 37 per cent of their monthly wages in mortgages, utilities and council taxes.
According to real estate agency Hamptons International, one in four renters moved to a more affordable area this year, up from one in five in 2022.
