Here are the six Scottish cities ranked among the UK's most affordable cities to live in for 2021

Here are the most affordable Scottish cities to live in for 2021, according to new market analysis from Halifax

The UK’s most and least affordable cities of 2021 have been revealed by British bank Halifax in its latest report on the state of the housing market across England, Scotland, Wales and Northern Ireland.

Buying a home in a UK city will typically set a buyer back by more than eight times average earnings, analysis has revealed.

A 10.3% surge in city house prices over the past year now sees the average property costing 8.1 times average earnings, Halifax found.

While the average city house price increased to £287,440, average earnings in these locations increased by only 2.1% annually, to £35,677.

The affordability of city living has worsened. In 2020, house prices in cities typically had cost around seven and-a-half times wages.

After sitting at 5.6 from 2011 to 2013, the house price-to-earnings ratio in UK cities has increased for eight years in a row.

Londonderry in Northern Ireland took the top spot for the third year in a row on this year’s most affordable cities list, with wages outstripping house prices in the city at a rate of 4.7.

London fell out of the top five most expensive cities for the first time in six years and 6 Scottish cities were been listed in the top 10 most affordable cities for 2021.

Here are the 2021’s most affordable Scottish cities and their house price to earnings (PE) ratio, according to Halifax.

Scotland’s most affordable cities for 2021

Stirling

With a house price to earnings ratio of 5.4, Stirling ranked on Halifax’s most affordable cities list in tied fourth place with Aberdeen and Glasgow.

Average house prices were £208,927 in comparison to typical wages in Stirling of £38,744.

Aberdeen

This year's list saw Aberdeen’s housing PE ratio ease as the city grew more affordable on a five year period.

Aberdeen’s average house price of £205,199 paired with £38,016 average earnings gave the city a 5.4 house PE ratio for 2021.

Glasgow

Increased affordability of housing in Glasgow also saw the city improve on its listings in Halifax’s 2020 findings.

The city, tied with Stirling and Aberdeen on PE ratio, saw an average house price of £196,625 and wages of £36,205 this year.

Perth

Average house prices and wages met in the middle in Perth as the city received a house price to earnings ratio of 5.5 for 2021.

The city took seventh position in the most affordable cities list with an average house price of £203,229 and typical wages of £36,700.

Inverness

Inverness is the only city found to be more affordable than 10 years ago.

An average home in the city was found to cost 5.6 times average earnings, down from 6.2 in 2011, due to wage growth there outstripping house price growth.

With a 5.6 ratio, Inverness recorded an average house price of £191,840 while typical wages sat at £34,373, according to Halifax.

Dundee

Taking tenth position in the top 20 cheapest cities to live in, Dundee’s price to earnings ratio of 5.8 comes as the city records an average house price of £181,150 compared to typical earnings of £31,344 for 2021.

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Do any Scottish cities make the least affordable UK areas list?

Winchester topped the least affordable UK cities list for 2021, with homes in the English city now 14 times annual earnings for those living and working there

But no Scottish cities featured among the most expensive UK cities identified by Halifax this year.

With London out of the top five spots on the list, the top spots were dominated by southern English cities like Oxford, Truro, Bath and Chichester.

Russell Galley, managing director, Halifax, said: "Affordability is significantly better in the north and there are now just two cities - Plymouth and Portsmouth - with better than average affordability in the south."

Additional reporting by PA Personal Finance Reporter Vicky Shaw

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