The most and least affordable cities to live in the East Midlands

The skyline of Nottingham with the dome of the Council HouseThe skyline of Nottingham with the dome of the Council House
The skyline of Nottingham with the dome of the Council House
It's a mixed result for people living in Nottingham

The most and least affordable cities to live in the East Midlands have been revealed - and it's an OK result for Nottingham, where house prices are lowest.

However, people living in Nottingham on average have a lower salary than those living in neighbouring cities.

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According to the data, collected by Smart Survey, Leicester is the least affordable city in the East Midlands to own a home. Meanwhile, Derby offers the best work-life balance in the region.

The data collection looked at how much disposable income two average-earning homeowners living and working in every UK city would have after paying their basic household bills and mortgage rate.

The study evaluates and compares median property prices and median PAYE earnings, as well as gas, electricity, water and council tax bills in 73 cities across England, Scotland, Wales and Northern Ireland. The mortgage rates are calculated equally, based on a 10% deposit and a fixed 5% interest rate over 25 years.

Let's look at the data for the East Midlands in more detail...

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Which East Midlands cities are least and most affordable for homeowners

The average house price in Nottingham is £210,000The average house price in Nottingham is £210,000
The average house price in Nottingham is £210,000

Monthly bills are about the same in the four cities in the East Midlands. In this region, it is a city’s earning potential and house prices that make the difference to the amount of disposable income left to those hoping to get on the property ladder.

The least affordable city in the East Midlands is Leicester, where median house prices are earmarked at £265,000. Two average-earning homeowners would have just under £1,800 to spare for other expenses every month, after paying their mortgage rate and basic bills.

People in Derby have the best work-life balance of all city dwellers of East Midlands. Despite having the second highest home prices of the four cities in the region, Derby offers the best mean salaries, thus average homeowners can pay their monthly utilities and mortgage and still have £2,360 every month to cover any other household costs.

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While Nottingham may have the most affordable homes (£210,000) of the four cities in the East Midlands, salaries are slightly worse than in Lincoln and Derby. This means that homeowners in Nottingham have less disposable income after paying their mortgage rate and basic utilities than those living and working in Lincoln or Derby.

Mo Naser, SmartSurvey CEO explains: “If you really have your heart set on living in a quaint cathedral city, you would most likely need to earn your paychecks elsewhere and commute for a quarter of a century to pay off your mortgage. Otherwise, you are looking at 25 years with hardly any disposable income left.”