Where are the Best (and Worst) Places to Buy a House in the UK in 2022?

Key Findings About House Prices in the UK

Choosing an area to live, particularly when the property market is so volatile, will be a key priority when looking to buy a home. First-time buyers may be driven by price, some on proximity to a town or city centre, while investors may focus on the long term, average growth in the area and average rental yield.

When buying a home, it helps to understand the UK property market. Hometrack has released its November house price index report, which showed average annual UK house price growth to be 7.8%, although sales are being agreed at a slower rate. Hometrack reports that discounts in asking prices have widened in recent weeks and sales volumes are down 28% on the same time last year, although this decline has been more modest in more affordable areas such as Scotland and the North East.

Buying a property in the cheapest towns and cities may suit your budget, but it may not be the best place to buy if you want the price of your house to rise. This blog looks at the most affordable cities to live in the UK and the cities with the most house price growth over the last 12 months. The Hometrack House Price Index looked at data from Zoopla from 20 major cities across the UK and found that:

• There was a 7.8% annual UK house price growth in October 2022
• 19 out of the 20 cities surveyed had some house price growth in the last 12 months
• 1 city had growth of over 10%

So What are the Most Affordable Cities to Buy a House in the UK?

• At number 5 was Belfast, with an average house price of £168,100. In fact prices in Northern Ireland are currently at the highest they have been in over a decade, but still remain very affordable.
• In at 4 was Liverpool, with an average property price of £155,300. This popular student city has since price increases of up to 23% since 2019, but still remains an affordable place to buy a house, compared to other cities. The wide range of properties and great transport links makes it an attractive option for buyers.
• Third was Newcastle with an average price of £149,200. 2021 saw houses in Newcastle take an average of just 25 days to sell, which shows how popular the city has become.
• In second was Glasgow with an average price of £142,300. Glasgow’s property market is a property hotspot for a wide variety of buyers, from families to young professionals, first-time buyers and buy-to-let investors.
• Number 1 is Aberdeen, with an average property price of £140,200, making it the most affordable city out of the 20 surveyed. House prices are generally cheaper in Scotland due to the fact that is it not as economically strong as England, therefore there is less demand for houses.

What are the least affordable cities to buy a house in the UK?

At number 5 was Bristol with an average asking property price of £338,400. The city has a steady demand from both students and young professionals and has a high rental demand, with an average rental yield of 5.69% (Zoopla).

• In number 4 was Bournemouth, with an average house price of £349,600. The city has a high demand for coastal properties and is popular with retirees and people wanting a holiday home.
• Number 3 was Oxford, with an average price of £456,000. Oxford is a well-known university town, which is well-connected to main cities such as Newcastle, Manchester and London.
• At number 2 was Cambridge, with an average property price of £472,900. Roads near to the city centre offer period properties, whilst the surrounding villages are popular with families due to the ease of access to the countryside.
• At number 1, the least affordable city in which to buy a property was London, with an average property price of £527,600. London attracts many investors as well as professionals with its employment opportunities and vibrant social scene.

Whether you are a first-time buyer or buy-to-let investor when researching an area to live you may not only want to consider local house prices but also if the area is an area of strong growth. According to Hometrack, the city of Nottingham had the highest annual growth in house prices in October 2022.

Cities with the most house price growth in the UK?

1. Nottingham 10.5%
2. Manchester 9.3%
3. Bournemouth 9%
4. Birmingham 8.9%
5. Liverpool 8.7%

Cities with the least house price growth in the UK?

1. Aberdeen -1.1%
2. Glasgow 4.2%
3. Edinburgh 4.4%
4. Cambridge 4.6%
5. Oxford 4.8%

Homebuyers should always do as much research as possible when buying a house. This includes prices of properties in the area and house price growth. With current high-interest rates, it is helpful to know that you are buying a property that is a good, long-term investment. Ultimately, it comes down to personal preference and what is the right area for you to buy a property.