City homes getting more affordable

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City properties are more affordable than they have been for almost a decade, according to a housing report.

The Bank of Scotland Affordable Cities Review found that the average price for a city home in Scotland at £158,706, is 4.96 times gross annual average full-time earnings. This is the lowest since 2004 when it was 4.79.

The report says Stirling is the most affordable city in Scotland, with a 4.04 ratio and the fifth most affordable in Britain. However, this only applies if you earn Stirling’s estimated average full-time salary of £37,000.

According to the Office for National Statistics, Stirling’s median salary – the centre point between the top and bottom earners – is slightly less than the Scottish median.

The average Scottish full-time wage is around £30,000, but the median wage is £25,000.

Bank of Scotland said the “marked improvement” in affordability in cities in recent years is driven by a significant fall in city house prices.

Since 2008, the average cost of a house in a city in Scotland has fallen by 15 per cent, or £29,018, from £187,725 to £158,706 in 2012.