Bath named as one of UK’s least affordable cities
Bath has been named as one of the least affordable cities in the UK according to research by SmartSurvey.
The UK-based data collection experts have calculated how much disposable income two average-earning homeowners living and working in every UK city would have after paying their basic household bills and mortgage repayments.
The study evaluates and compares median property prices and median PAYE earnings, as well as gas, electricity, water and council tax bills in 73 cities across England, Scotland, Wales and Northern Ireland. The mortgage rates are calculated equally, based on a 10% deposit and a fixed 5% interest rate over 25 years.
According to the data, Bath has the most expensive homes in the region, with a median house price of £447,475.
Monthly earnings in the city average £2,307. Based on two median-earning adults per household, this leaves £1,537 per month after the mortgage and bills are taken into account.
Overall, Bath sits in sixth place in terms of UK cities with the least disposable income.
In comparison to Bath, the median price for a city home in the UK is £260,000. City residents generally earn £2,154 a month leaving two average-earning city homeowners with £2,440 in disposable income every month to cover all their other household costs.
Four other ‘cathedral’ cities – Chichester, Truro, Canterbury and Winchester – also squeeze homeowners’ pockets. Property prices and bills are generally high here, whereas incomes lag far behind, making them unrealistic for most average earners wanting a comfortable life.
Only in Truro single median earnings are higher than mortgage rates, but this would leave sole homeowners with just £147 per month to cover basic bills and all other necessities.
Mo Naser, SmartSurvey CEO, said, “If you really have your heart set on living in a quaint cathedral city, you would most likely need to earn your paychecks elsewhere and commute for a quarter of a century to pay off your mortgage. Otherwise, you are looking at 25 years with hardly any disposable income left.”
The study was conducted by SmartSurvey, a leading UK digital surveying platform, using the latest available data from local councils, the Office for National Statistics, the Department for Energy Security and Net Zero, Rightmove, Statista and Which.
