City is ranked among hardest to afford
A survey by Halifax Bank revealed that Chichester is among the least affordable cities in the UK.
The research identified the most and least affordable of 61 cities in the bank’s annual Affordable Cities Review.
Over the past 12 months to June 2021, the average house price of UK cities has grown by 10.3 per cent while average earnings for those living and working in cities rose just 2.1 per cent.
As a result, the average home in a UK city now costs 8.1 times average earnings which is known as the Price to Earnings, or PE, ratio.
Chichester, with a PE ratio of 12.0, took fifth place on the list of least affordable cities. Average house prices were £449,243 with mean annual earnings at £37,352.
Caroline Wood, director of the Coastal West Sussex Partnership, said: “Chichester has been named by Halifax bank as the fifth least affordable city in the UK based on a ratio of average income to house prices – less affordable than even London and nearby Brighton and Hove.
“Chichester is a beautiful and historic city, surrounded by an abundance of natural beauty.
“As a result, it’s a popular place for people to live, especially for people who want to retire. It’s also in close proximity to London.
“With this, and the need to conserve the South Downs National Park, affordable housing can present a challenge here.
“However, Chichester is a vibrant place for business investment. Something we are particularly hopeful about is the excellent educational opportunities in Chichester, which will lead to a more skilled workforce and drive investment.
“The University of Chichester is in the UK’s top 30, with a leading business school and 96.5 per cent of its graduates in employment six months after completing their degrees.
“We also have the Chichester College Group, rated as Outstanding by Ofsted, and shortlisted to become an Institute of Technology.
“We see these educational institutions as powerfully positive drivers of change for the area.
“Our message to businesses is to invest in this potential and create more of the high-paid jobs needed to accommodate a technically skilled workforce.
“While this won’t decrease house prices in the area, and a focus on more affordable housing is incredibly important, we urge businesses to consider the skills on offer in Chichester.”