Britain’s most affordable places to buy a home revealed

Homes in 36 British towns were valued at less than twice annual household earnings, according to Zoopla’s research covering 929 towns.

Shildon in County Durham topped the affordability ranking, with its average property value ar £73,600. This is equivalent to 1.15 times the combined annual earnings of two full-time workers.

Across Britain, the average home was valued at £299,100, or 4.3 times annual household earnings.

The ranking compares property values with local earnings, rather than judging affordability on house prices alone.

Scotland accounted for 23 of the 36 towns below the twice-earnings threshold.

Eight were in the North East, four in the North West and one in Wales, highlighting the concentration of more affordable homes in Scotland and northern England.

Britain’s most affordable locations by area

The most affordable locations in the nations and regions covered, ranked by their price-to-income ratio, were:

• Shildon, County Durham, North East: Average property value of £73,600, or 1.15 times household earnings.
• Fraserburgh, Aberdeenshire, Scotland: Average property value of £116,000, or 1.59 times household earnings.
• Workington, Cumberland, North West: Average property value of £114,900, or 1.65 times household earnings.
• Ferndale, Rhondda Cynon Taf, Wales: Average property value of £116,200, or 1.82 times household earnings.
• Kingston upon Hull, Yorkshire and the Humber: Average property values of 2.16 times household earnings.
• Stoke-on-Trent, West Midlands: Average property values of 2.64 times household earnings.
• Ilkeston area, Derbyshire, East Midlands: Average property value of £192,100, or 2.70 times household earnings.
• Great Yarmouth, East of England: Average property values of 2.72 times household earnings.
• Dover, South East: Average property value of £206,300, nearly three times household earnings.
• Bideford, South West: Average property values of 3.35 times household earnings.
• Tower Hamlets, London: Average property value of £455,200, or 4.91 times the combined annual earnings of two full-time workers.

Even in the South West’s most affordable town, Bideford, the average home was worth more than three times annual household earnings.

In London, Tower Hamlets was the most affordable borough, although its ratio remained above the British average.

Mortgage costs still matter

Slower house price growth has helped improve affordability, but higher mortgage rates mean buyers may not see the full benefit in their monthly repayments.

Richard Donnell, executive director at Zoopla, said: “House prices have been rising more slowly than incomes, helping to improve housing affordability, but higher mortgage rates continue to offset some of these gains by increasing the monthly cost of buying a home.”

Mr Donnell noted that affordability varied widely by location, with towns across northern England and Scotland offering better value compared with local wages.

However, lower property prices do not automatically make buying straightforward.

He said: “Access to employment, deposits and mortgage costs remain important considerations.”

Buyers currently have more properties to choose from than a year ago, alongside greater scope to negotiate on asking prices, particularly across southern England, Mr Donnell said.

He encouraged prospective buyers to review their budgets and consider homes in nearby areas.

Mr Donnell added: “Expanding a search to neighbouring towns could make a meaningful difference to their buying options.”

Zoopla’s analysis included only postal towns containing at least 5,000 homes.