New research, analysed by Openpropertygroup.com, shows that the North East is the 2nd most affordable region to buy new build homes.
Data from National Statistics calculated affordability ratios based on ‘New Build house prices-to-workplace-based’ earnings. The higher the number/ratio, the less affordable, on average, it is for a resident to purchase a house in their local authority district.
Cambridgeshire, Cumbria and Derbyshire made the top 3 in the local authority affordability rankings with ‘new-build house price-to-earnings’ ratio’s of 7.06, 7.58 and 8.11 respectively. Despite no North East local authorities making the top-10 list, the region as a whole had a strong ratio average of 7.95.
It’s no surprise that London was the least affordable region with the South East closely following behind.
Open Property Group, a ‘sell house fast’ agency Managing Director, Jason Harris-Cohen, said:
“While there has always been a North-South divide when it comes to the cost of buying a brand new home, our latest analysis shows the gaps are closing. It is inevitable that the ‘race for space’, where flats have fallen out of favour, and the great escape to more suburban and rural areas, is pushing up the value of new homes outside of Greater London. This is further exacerbated by the shortfall in house building. Although it’s still possible to rank where is most affordable in terms of new home purchases, the gap between the cheapest and most expensive places is not as stark as you’d imagine.”
|
Top 5 LEAST Affordable Counties |
New Build House Price-to-Workplace-based Earnings Ratio |
|
1. Worcestershire |
13.58 |
|
2. West Sussex |
13.41 |
|
3. Warwickshire |
13.23 |
|
4. Surrey |
12.57 |
|
5. Suffolk |
12.02 |
|
Top 5 MOST Affordable Counties |
New Build House Price-to-Workplace-based Earnings Ratio |
|
1. Cambridgeshire |
7.06 |
|
2. Cumbria |
7.58 |
|
3. Derbyshire |
8.11 |
|
4. Devon |
8.84 |
|
5. East Sussex |
9.15 |
