Britain’s most affordable towns have been identified in a new analysis, with homes in some locations costing less than twice the combined annual income of a working couple.
A lower house price-to-earnings ratio generally means buyers do not need to commit as much of their income to a property, while monthly mortgage costs may also be more manageable.
Shildon in County Durham topped the list. The typical property there is valued at approximately £73,600, equivalent to just 1.15 times the annual earnings of a local two-adult working household.
The income comparison is based on two people working full-time in the area.
Ferryhill, also in the north-east of England, ranked second. Homes cost an average of £91,500, giving the town a house price-to-earnings ratio of 1.43.
Peterlee, another north-east town, took third place among Britain’s most affordable locations for homebuyers.
The average property value in Peterlee is £96,500, while homes cost 1.51 times typical local household earnings.
Snap up a bargain: These towns have properties which cost less than twice average wages for a two-adult household
County Durham dominated the top of the rankings, supplying all three of Britain’s most affordable towns, with typical property prices below £100,000.
Fraserburgh, the historic Aberdeenshire fishing port known for its sandy coastline, came fourth. Its average home value is around £116,000, producing a house price-to-earnings ratio of 1.59.
Irvine was Scotland’s next highest entry, ranking fifth overall after Zoopla calculated an average property price of about £114,800 and a ratio of 1.62.
Peterhead, Ardrossan, Methil and Saltcoats also featured among the 10 most affordable towns in Britain. Workington in north-west England completed the list.
A typical Workington home costs approximately £114,900, or 1.65 times the earnings of local households.
Scotland accounted for almost two-thirds of the 36 towns where property values were below twice local household earnings. The north-east and north-west of England, along with Wales, made up much of the remainder.
Zoopla’s analysis covered 929 towns across Britain, where the average property was valued at £299,100.
That figure represents 4.3 times typical annual household earnings, which stand at approximately £69,600.
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| Rank | Town | Region | Typical home value | Price-to- household earnings ratio |
|---|---|---|---|---|
| 1 | Shildon | North East | £73,600 | 1.15 |
| 2 | Ferryhill | North East | £91,500 | 1.43 |
| 3 | Peterlee | North East | £96,500 | 1.51 |
| 4 | Fraserburgh | Scotland | £116,000 | 1.59 |
| 5 | Irvine | Scotland | £114,800 | 1.62 |
| 6 | Peterhead | Scotland | £120,600 | 1.65 |
| = | Ardrossan | Scotland | £116,900 | 1.65 |
| = | Workington | North West | £114,900 | 1.65 |
| 9 | Methil | Scotland | £116,400 | 1.69 |
| = | Saltcoats | Scotland | £119,600 | 1.69 |
Where are the most affordable towns in the south?
Dover was the south-east of England’s most affordable town for buyers. Property prices average £206,300, equal to 2.97 times local household earnings.
In the south-west, Bideford ranked as the best-value town. The typical home costs about £224,700, or 3.35 times annual local earnings.
Tower Hamlets was the most affordable London borough in the analysis, although prices remained considerably higher than elsewhere. The average home there costs £455,200, producing a house price-to-earnings ratio of 4.91.
Greenwich and Croydon followed, each recording a ratio of 5.26 times household earnings. Zoopla said the figures illustrated the ‘considerable affordability gap’ separating the capital from Britain’s cheapest towns.
London was the least affordable region overall. A typical property was valued at £524,100, equivalent to 6.11 times household earnings.
Even the most affordable towns in southern England generally had property prices of around three times the average local household income.
The south-east was Britain’s second least affordable region after London. Homes there typically cost £395,700, or 5.33 times annual household earnings.
Richard Donnell, executive director at Zoopla, said: ‘House prices have been increasing at a slower pace than incomes, which has helped housing affordability improve. However, elevated mortgage rates continue to erode some of that progress by pushing up the monthly cost of buying a home.
‘Affordability differs sharply from one part of the country to another, with many towns across northern England and Scotland providing much stronger value compared with local household incomes.
‘But a cheaper property does not automatically make buying easier. Employment prospects, the size of a deposit and mortgage costs all remain crucial factors.’
He added: ‘Buyers now have more properties to consider than they did a year ago, and there is greater room to negotiate, particularly in southern England.
‘Anyone planning a move should reassess both their budget and the homes available in their area. Looking at neighbouring towns could significantly widen their options.’
Nathan Emerson, chief executive of estate agent organisation Propertymark, said the findings showed just how uneven housing affordability remains across the UK, with some towns offering genuine opportunities for people hoping to get onto the property ladder.
He added: ‘Yesterday’s decision by the Bank of England to raise the base rate to 4 per cent puts additional pressure on buyers. It could increase borrowing costs and create another obstacle for prospective homeowners.
‘More buyers are looking beyond major towns and cities in search of better value. The key challenge is making sure these communities have enough housing, reliable infrastructure and suitable economic opportunities to support long-term growth and make homeownership realistic.’
