"Aberdeen ranks first with homeowners paying 37% of their monthly salaries towards mortgage, utilities and council tax costs."
- a spokesperson at L&C Mortgages
Based on the Office of National Statistics house price data at a 4.5% interest rate repaid over 25 years with average utility costs and council tax per location, L&C Mortgages found that Aberdeen was the cheapest city to own a home when these costs were compared to residents’ median salary. In the ‘Granite City’, average house price were £139,551 as of May 2023, with the total mortgage cost repaid over 25 years at 4.5% interest reaching £209,349. This is the equivalent to monthly mortgage payments of £698 or £988 combined with utilities and council tax. This amounts to 37% of a £2,696 median salary.
Dundee was the second cheapest city with the average cost of a home totalling £142,777 as of May 2023. The total mortgage cost repaid over 25 years at 4.5% interest was £214,189, with monthly mortgage payments at £714 or 31,049 including utilities and council tax which is 42% of residents’ median salary (£2,524) in the ‘City of Discovery.’
Kingston-Upon-Hull came in third with the average home costing £134,582 and monthly mortgage payments of £673. This was followed by Glasgow at £168,415, Durham (£127,047), Sutherland (£136,554), and Preston (£158,204).
Meanwhile, Bradford had monthly costs of £1,171, including mortgage, utilities and council tax payments, representing 49% of the median salary (£2,392). Stoke-on-Trent had total outgoings of 49% of the median salary (£2,272) and Doncaster had monthly mortgage payments of £1,166 which represents 51% of the median salary (£2,276).
Commenting on these findings, a spokesperson at L&C Mortgages, has said:
"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."
