Oxford among least affordable first-time buyer areas

Nationwide Building Society identified the city alongside Cambridge, York, and Cardiff as especially challenging for people hoping to get on the property ladder.

In contrast to Oxford’s high house prices, Inverclyde was found to be the most affordable area in Great Britain, with average first-time buyer homes priced at just 2.3 times local earnings.

Andrew Harvey, Nationwide’s senior economist, said: “Inverclyde in Scotland is the most affordable local authority in Great Britain, with average first-time buyer house prices just 2.3 times average earnings in the area.”

The report measured affordability by comparing average first-time buyer home prices with typical local earnings.

The London borough of Kensington and Chelsea was the least affordable, with properties costing 13.9 times local earnings.

Burnley and Hartlepool were also listed among the most affordable locations, where property prices are just under three times the average local wage.

A 10 per cent deposit for a first-time buyer home is £15,000 or less in around 10 per cent of UK council areas.

However, in almost half of all areas, an average deposit falls between £15,000 and £25,000.

Mr Harvey said approximately 70 per cent of local authorities have seen an improvement in affordability over the past year.

Nationwide’s analysis used average first-time buyer home prices and local earnings figures for the average adult full-time worker to reach its conclusions.

Mortgage rates have risen in recent weeks, adding another hurdle for first-time buyers and homeowners.