AUGUST 27, 2014 | BY A & S Property
Northern cities present best chance for young professionals to get on the property ladder
The UK’s northern cities offer young professionals a greater chance of getting on the property ladder, according to Knight Frank, this is despite lower average starting salaries.
The firm examined affordability - measuring house prices against regional average earnings for those aged between 22 and 39 – with the results showing how house price to earnings ratios vary across the country.
For young professionals, Durham is the most affordable city to buy a home, followed closely by Nottingham and Liverpool. Hastings is the most affordable in the South of the UK, albeit only the 15th most reasonable in the top 25, followed by Canterbury and Reading.
Grainne Gilmore, Head of UK Residential Research for Knight Frank said that despite higher job creation and average salaries in the capital, graduate vacancies and stronger economic performances in the North are making cities like Liverpool, Manchester and Birmingham very appealing to young professionals.
In Scotland, the annual salary for the three cities is higher than the majority of the cities in England, at £27,938. This therefore makes Glasgow an affordable alternative with average house prices at £124, 496, ranked at 4.5. Both Aberdeen and Edinburgh are less affordable at 7.4 and 7.7.
“Both Aberdeen and Edinburgh have unique qualities which is why they might command more of a premium. Aberdeen’s oil business and long and sandy coastline and Edinburgh’s UNESCO status attracts Londoners and overseas buyers too,” explained Ran Morgan, Head of Knight Frank Scotland.