Britain’s Least Affordable City to Buy Property Is… Brighton

A new analysis reveals that Brighton has overtaken London as the most unaffordable city for homebuyers based on current housing stock and average affordability.

With only 8% of properties in the city falling within the budget of the average buyer, Brighton ranks as Britain’s least affordable housing market.

Key Findings:

  1. National Overview:
    The average salary in Britain is £38,413.
    With a mortgage at 4.5 times this income (£172,859) and a 15% deposit (£30,504), the average buyer can afford a property worth £203,363.
    However, only 23% of properties nationwide fall within this price range.
  2. Brighton Tops the List:
    In Brighton, the average salary is £38,248, providing a maximum buying budget of £202,489.
    Out of all live property listings in Brighton, only 8% are affordable for the average buyer, making it Britain’s least accessible housing market.
  3. London Comes Second:
    In London, just 9% of properties are within reach of the average buyer, cementing its reputation as a difficult market for first-time buyers.
  4. Other Challenging Markets:
    Bristol: 11% of properties are affordable.
    Leicester and Nottingham: 14% each.
    Manchester and Edinburgh: 20% each.
  5. Most Affordable City – Liverpool:
    Liverpool stands out with 47% of properties available within the average local budget of £180,911, making it the most accessible major city for buyers.

Income vs. House Prices:

  • The disparity between wage growth and house price inflation has significantly limited affordability across the UK.
  • Buyers in popular cities like Brighton and London face stiff competition and dwindling options.
  • Regional cities like Liverpool offer a stark contrast, with a much higher proportion of affordable homes.

Expert Commentary:

Jonathan Samuels, CEO of Octane Capital:

“Affordability isn’t just about high property values; income levels and mortgage eligibility play a critical role. Brighton has become particularly challenging, surpassing London as the least affordable city in terms of housing availability for the average buyer. Without significant wage increases or policy interventions, this gap is only likely to widen.”

Implications:

This data underscores the growing regional disparities in housing affordability across the UK. While Brighton and London represent extremes of unaffordability, cities like Liverpool provide hope for those seeking affordable options. However, the persistent imbalance between wages and house prices highlights a pressing need for affordable housing initiatives and wage growth to close the gap.