Scotland business

Bank of Scotland: City homes less affordable

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The typical Scottish city home has become less affordable over the past year as a result of rising prices, according to a Bank of Scotland report.

It found that on average, affordability in Scottish cities has reached its lowest level since 2009.

The average city house price has risen by 3%, from £176,009 in 2015 to just over £181,000 this year.

As a result, average affordability has worsened from 5.25 to 5.36 times gross average annual earnings.

However, it has not reached levels seen at the height of the last housing market boom in 2008, when prices were 6.12 times earnings.

The Bank of Scotland Affordable Cities Review found that Edinburgh was Scotland's least affordable city, with the average price of £220,099 - 6.12 times the gross average earnings in the city.

Stirling was the most affordable city and the second most affordable in the UK.


Least affordable cities in Scotland, 2016 - house price/earnings ratio:

  • Edinburgh 6.12
  • Inverness 6.03
  • Aberdeen 5.72
  • Dundee 5.38
  • Perth 5.24
  • Glasgow 5.07
  • Stirling 4.11
  • Scottish cities average 5.36
  • UK cities average 6.62

Source: Bank of Scotland, ONS


The average property price of £165,658 was 4.11 times the gross average annual earnings.

House price growth has been highest in Aberdeen over the past decade and since 2011.

It has seen a 58% increase over the last 10 years, and a 22% rise since 2011, with the average price now standing at £214,160.

The chief executive of industry body Homes for Scotland, Nicola Barclay, said: "The single most effective way to address concerns on housing need and affordability is to increase the supply of new homes of all tenures.

"Scotland's growing population has a diverse set of housing needs and aspirations and there is an ever-present demand for good quality, sustainable homes."

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