Oxford revealed as UK's least affordable city for property

Oxford has been revealed as the UK's least affordable city with Londonderry in Northern Ireland and Stirling in central Scotland the most affordable.

Lloyds Bank analysed city house prices and earnings growth in the UK to reveal that the average cost of a home in a UK city has outpaced the rise in earnings by 11 percent.

That means home affordability across the UK is at its lowest level since 2007.

Average home costs 12 times earnings

According to the Lloyds research, in Oxford, home to the world's highest-ranked university, an average home will cost £460,184. That's 12 times (12.6) the city's average earnings of £36,430.

Another seven cities have average house prices 10 times more than average annual earnings: Chichester (11.5), Winchester (11.3), Truro (11.1), Greater London, Bath and Cambridge (all 10.3).

Within London, there are considerable variations across the boroughs, with those closer to the centre of the city much less affordable than the Greater London average.

The most affordable places to buy outside of the south of England are Stirling and Londonderry where the average house price to earnings ratio is 4.4, meaning house prices are four times average earnings.

Newry and Belfast, also in Northern Ireland, are also in the top 10 most affordable. Bradford is England's most affordable city with Swansea clocking up the No.1 spot for Wales.

Prices outpacing wage growth

Andrew Mason, mortgage products director at Lloyds bank, said: "Buying a home in UK cities remains challenging, as average house prices are outpacing wage growth.

"However, the market has seen the number of first-time buyers at a high, and homeowners are still attracted to cities across the UK, in spite of rising costs.

"Over the last five years, more than half of northern cities have made the UK top 10 in house price growth whereas, over a longer period, southern cities dominate."