Residential property in cities across Scotland has become significantly more affordable in the past five years, a report says.
Residential property in cities across Scotland has become significantly more affordable in the past five years, a report says.
Residential property in Scottish cities remains at its most affordable level for several years, new figures reveal.
Home affordability in the cities has improved by almost a quarter since 2008, according to the latest Bank of Scotland Affordable Cities Review.
The average city home in Scotland carries a price tag of 5.15 times gross annual average earnings at £159,450, the data shows.
This is the lowest ratio since 2004 when it was 4.94 and it is over a fifth (22%) lower than the peak of 6.57 in 2008.
The report suggests city living in Scotland is currently more affordable than across the UK as a whole, with the UK city average ratio currently at 5.6.
Nitesh Patel, housing economist at the Bank of Scotland, said: "There has been a significant improvement in housing affordability in many of Scotland's major urban areas over the past five years."
Scotland's city living affordability ratio has remained steady over the past year, the figures show.
A hefty fall in house prices is the key factor in the rising affordability of city living in recent years, according to the Bank of Scotland, following a 15% decline over the past five years.
It says the average city house in Scotland cost £187,377 in 2008 and that figure stands at £159,450 in 2013.
Homebuyers carrying out a property search in Scotland who want to seek out the best value properties might want to focus their efforts on Stirling which, with an affordability ratio of 3.81, is the most affordable city in Scotland and the fourth most affordable in the UK.
Glasgow is the next most affordable city in Scotland with average property prices at 4.23 times gross average annual earnings.
Inverness has the biggest average house price to earnings ratio of Scottish cities at 5.71.
Kirsten Stuart, associate in Strutt & Parker's Edinburgh office, said: "The average house price across Scotland has come down in recent years, which has improved the house price to earnings ratio. A recent study showed that mortgage payments now accounted for 22% of Scottish homeowners' disposable income, compared to 38% five years ago. This favourable affordability should make it easier for buyers trying to enter the housing market or move up the ladder and this in turn should kickstart the market.
"However, this does not mean there is a rush to buy. High deposit requirements still provide a challenge to buyers."
The most affordable city in the UK is reported to be Londonderry where the ratio is 3.38 - average residential property prices there are £94,776 - with Northern Ireland also providing the next two in the list with Lisburn (3.5) and Belfast (3.67).
Oxford is at the other end of the scale as the least affordable UK city with an average property price at 9.66 times gross average earnings in the area.
Salisbury (8.6), Bath (8.2) and Truro (8.2) in the south-west of England are next on the list.