Home affordability for city dwellers in Scotland has improved by nearly a quarter since 2008, according to the Bank of Scotland Affordable Cities Review. The average price when buying a city home in Scotland (£159,450) stands at 5.15 times gross annual average earnings – 22% below the peak of 6.57 in 2008. 

Overall, city living in Scotland (5.15) is more affordable than the UK city average (5.60).

This marked improvement in affordability in city homes has been driven by the significant fall in city house prices, says the Bank of Scotland. Since 2008, the average city house price in Scotland has fallen by 15% from £187,377 in 2008 to £159,450 in 2013.

Stirling is the most affordable city in Scotland and the fourth most affordable in the UK. It has an average property price that is 3.81 times gross average annual earnings in the area. The next most affordable Scottish city is Glasgow (4.23), which is also the seventh most affordable city in the UK.

The least affordable city in Scotland is Inverness, where the average property price is 5.71 times gross average annual earnings in the area.

According to Nitesh Patel, housing economist at Bank of Scotland, the marked improvement in city affordability is likely to help support demand for those able to raise the necessary funds to enter the housing market.