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Is It Cheaper To Buy A Home In Canada Compared To The UK?

Housing-Market / UK Housing Apr 12, 2023 - 06:50 PM GMT

By: Submissions


The cost-of-living crisis has been hitting heavily in the last couple of years. Not only is it affecting the price of consumer goods and services and the cost of materials and energy, but it is also affecting the very homes we live in.

Back in 2021, property experts were stating that the UK would experience a “bumper year”, but now it is not looking very likely. In fact, housing prices are expected to dip under the rate of inflation, meaning there will be a real-terms reduction, meaning higher interest rates and pricier mortgages for cheaper properties.

Canada is also off to a shaky start in 2023. Homebuilding and sales activities have shown multi-year lows, with home buying hitting a 14-year low in January. This is in keeping with a number of other countries all across the world, as inflation continues to cause ripples across previously stable markets.

But which country, between Canada and the UK, is more affordable for the average buyer? If you are considering immigrating to Canada for work purposes, for instance, are you going to be in a better position for buying a home in Canada than you would have been in the UK?

Average House Prices In The UK

Toward the end of 2022, house prices in the UK increased by 12.6%. This means the average UK house price became £296,000 -- £33,000 more expensive than it was toward the end of 2021. Specifically, house prices varied between England, Wales, Scotland and Northern Ireland -- £316,000, £224,000, £195,000 and £176,000, respectively.

Average House Prices In Canada

For Canada, the trend of worldwide inflation led the average house price to sit at $704,000 Canadian dollars (£419,584) by the end of 2022. This is, however, expected to fall to $662,103 (£394,674) by the end of 2023 and then rise by 3.5% in 2024 to $685,056 (£400,471).

Once again, this all varies depending on what part of Canada the home is selling. For instance, the average in Vancouver, British Columbia, is $1,087,500,  the average in Victoria, British Columbia, is $672,800, and the average in Calgary, Alberta, is $430,000.

Is Canada A Wise Move?

All in all, Canada is more expensive when it comes to the housing market, but that doesn’t make it a bad move if you are planning to immigrate. For one, there are many mitigating factors which would suggest that Canadian residents are not drastically more affected by the cost-of-living crisis than those in the UK.

Of course, the homes might be more expensive, but the monthly average salary in Canada is higher than in the UK, sitting at $3,217 compared to £1,801 in the UK. As well as this, it always depends on where you are moving to when it comes to the housing market. Certain areas of Canada will be cheaper than the others, especially when it comes to cities.

Canada is also known as one of the best places for families and immigrants, especially as Canada has a 23% lesser crime rate compared to the UK. As ever, it is important to weigh up your options, your finances and the benefits of living in Canada over the UK.

By Mildred Austria

© 2023 Copyright Mildred Austria - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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