NEW DATA has revealed the cheapest British cities to own a home.
The research, conducted by L&C Mortgages, analysed house price data from the Office for National Statistics, calculated with a 4.5% interest rate repaid over 25 years and combined with the average price of utilities and council tax per location. This total was then compared to the median salary in each city to reveal the least expensive British cities to own a home.
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Aberdeen takes the crown as the cheapest British city to own a home. In the “Granite City”, average house prices were £139,551 as of May 2023, with the total mortgage cost repaid over 25 years at 4.5% interest being £209,349. This equates to a monthly mortgage payment of £698, £988 combined with utilities and council tax, amounting to 37% of the median salary (£2,696).
In second place is Dundee, with the average cost of a home being £142,777 as of May 2023. Repaid over 25 years at 4.5% interest, the total mortgage cost is £214,189. This makes monthly mortgage payments £714, £1,049, including utilities and council tax, which is 42% of the median salary (£2,524) in the “City of Discovery”.
Glasgow is the fourth least expensive city to own a home, with average house prices being £168,415 as of May 2023. The total mortgage costs are £252,650 when repaid over 25 years at 4.5% interest; monthly mortgage payments equal £842 and £1,209 with utilities and council tax. Overall, this cost represents 45% of the median salary (£2,684) in the Scottish city.
A spokesperson at L&C Mortgages has commented: “During the first six months of 2023, 291,568 mortgages were approved across Britian. This has allowed both first-time buyers and seasoned homeowners to invest in property in a location they’re happy to call home.
“This study reveals the cheapest cities to own a home throughout the nation. The research, which has considered monthly mortgage rates alongside utilities and council tax, shows that the least expensive cities are predominantly located in the nation’s northern regions.
“Scotland, for example, is highlighted three times in the top five cheapest cities to own a home. Aberdeen ranks first with homeowners paying 37% of their monthly salaries towards mortgage, utilities and council tax costs.”
Table: The cheapest cities to own a home in Britian
| Rank | British Cities | Average cost of homes (£) | Cost minus 10% deposit (£) | Total mortgage cost over 25 years at 4.5% (£) | Monthly mortgage payment (£) | Utilities, council tax and mortgage per month (£) | Utilities, council tax and mortgage as % of monthly salary (%) |
| 1 | Aberdeen | 139,551 | 125,596 | 209,349 | 698 | 988 | 37 |
| 2 | Dundee | 142,777 | 128,499 | 214,189 | 714 | 1,049 | 42 |
| 3 | Kingston-Upon-Hull | 134,582 | 121,124 | 201,895 | 673 | 989 | 42 |
| 4 | Glasgow | 168,415 | 151,574 | 252,650 | 842 | 1,209 | 45 |
| 5 | Durham | 127,047 | 114,342 | 190,591 | 635 | 1,010 | 46 |
| 6 | Sunderland | 136,554 | 122,899 | 204,853 | 683 | 1,016 | 47 |
| 7 | Preston | 158,204 | 142,384 | 237,332 | 791 | 1,135 | 49 |
| 8 | Bradford | 168,497 | 151,647 | 252,773 | 843 | 1,171 | 49 |
| 9 | Stoke on Trent | 144,136 | 129,722 | 216,227 | 721 | 1,122 | 49 |
| 10 | Doncaster | 161,295 | 145,166 | 241,969 | 807 | 1,166 | 51 |
L&C Mortgages offers free mortgage advice from the U.K.’s best mortgage broker online or by phone, seven days a week.
