HOME affordability, the ratio between average city house prices and average gross local earnings, across UK cities has hit its worst level in eight years, according to Lloyds Bank’s Affordable Cities Review.

The report shows that the average UK city house price has risen by eight per cent from £196,229 in 2015 to its highest ever level of £211,880 in 2016.

This has resulted in average affordability in the nation’s cities worsening in the last 12 months from 6.2 to 6.6 times gross average annual earnings; the third successive annual decline in affordability.

The latest figures from Lloyds Bank also reveal a significant north-south divide, with 17 of the 20 least affordable cities located in southern England, with only Lichfield, Leicester and York appearing in the Top 20 outside of the south.

By contrast, all of the 20 most affordable cities for homebuyers are outside of southern England.

Affordability in UK cities is, on average, now at its worst level since the average house price to earnings rose to 7.2 at the height of the last housing market boom in 2008.

Andrew Mason, Lloyds Bank mortgage products director, commented: “House price rises in the past three years have risen more steeply than average wage growth, making it more expensive to buy a home in the majority of UK cities. This has also widened the north-south divide, as house prices in the south have generally seen stronger growth than in the north. He added: “Winchester has recorded the biggest gains over the past decade, whilst London, not surprisingly, has seen the largest growth during the economic recovery of the last five years.”