Britain’s most affordable places to buy a home revealed as average prices sit below £150,000

The figure has fallen from 7.6 a year ago, with wages growing faster than house prices. For first-time buyers, affordability is stronger, with the average property costing 5.9 times earnings.

Lloyds compared its house price data with earnings figures from the Office for National Statistics for April to June 2026 and the same periods in previous years.

The improvement has been greatest in some of Britain’s most expensive regions.

In London, the ratio fell from 10.9 to 10.3 over the past year, while the South East dropped from 9.7 to 9.1. Eastern England recorded a fall from 8.7 to 8.2, while the South West moved from 8.2 to 7.7.

Despite the improvements, London and the South East remain the two least affordable regions.

Changes were smaller in areas where homes were already more affordable. Scotland’s ratio remained at around 5.3, while the North East of England fell slightly from 5.1 to 5.0.

The North West improved from 6.5 to 6.3, while Yorkshire and the Humber moved from 6.0 to 5.8. Northern Ireland was the only UK region where affordability worsened, with the ratio increasing from 5.8 to 6.0 as house prices grew faster than wages.

Britain’s most affordable places to buy a home Scottish locations feature heavily among Britain’s cheapest areas relative to local earnings, accounting for six of the 10 most affordable locations.

Inverclyde and Aberdeen share the top spot, where the average home costs 3.5 times local earnings. Average properties cost £146,030 in Inverclyde and £147,851 in Aberdeen.

Kingston upon Hull, Blackpool and Dundee are joint third, each with a price-to-earnings ratio of 3.6. Dumfries and Galloway and North East Lincolnshire follow with ratios of 3.7, while Angus, Middlesbrough and East Ayrshire complete the top 10 at 3.9.

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The full list is:

1. Inverclyde, Scotland – £146,030 | 3.5 times earnings
2. Aberdeen, Scotland – £147,851 | 3.5 times earnings
3. Kingston upon Hull, Yorkshire and the Humber – £134,642 | 3.6 times earnings
4. Blackpool, North West – £141,550 | 3.6 times earnings
5. Dundee, Scotland – £152,072 | 3.6 times earnings
6. Dumfries and Galloway, Scotland – £153,360 | 3.7 times earnings
7. North East Lincolnshire, Yorkshire and the Humber – £138,543 | 3.7 times earnings
8. Angus, Scotland – £160,928 | 3.9 times earnings
9. Middlesbrough, North East – £139,678 | 3.9 times earnings
10. East Ayrshire, Scotland – £162,459 | 3.9 times earnings

Andrew Asaam, mortgages director at Lloyds, said: “There are some encouraging signs for people looking to buy a home.

“Wages have continued to rise while house prices have remained relatively stable, helping to narrow the gap between earnings and house prices.

“However, affordability remains stretched for many households.

“Mortgage rates are higher than they were a year ago and saving for a deposit continues to be one of the biggest barriers facing first-time buyers.”

Mr Asaam added that buyers may have more options available to them than they realise, including mortgage products tailored for those with smaller deposits.

The Government recently unveiled its Your First Home scheme, designed to help first-time buyers in England get on the property ladder.

Under the initiative, purchasers will be able to buy a new-build home with a deposit of just 2.5 per cent, with the Government providing a further 20 per cent loan towards the cost.

Further details are expected in the Budget, and developers signing up to the programme will also be required to contribute towards its costs.

Mr Asaam said: “For first-time buyers in particular, a small shift in location could make a big difference, not just in getting on the ladder, but in what kind of property is within reach.

“Many parts of Scotland and northern England continue to offer some of the best value relative to local earnings.

“For buyers with flexibility over where they live, that can make a meaningful difference to what they can afford.”