With the cost of living continuing to bite a number of Brits nationwide, Zoopla has uncovered the most affordable towns and cities in Britain.
The research found that that despite annual earnings growing by 3.7 per cent over the last 12 months, outpacing house price growth, UK homebuyers can still expect to pay 3.8 times average annual household incomes. Furthermore, the 35% of homebuyers who are single, will expect to pay 7.6 times their annual income on average.
YoY change in affordability ratios by region
|
Region |
Average house value (Oct 24)2 |
2024 value-to-earnings ratio |
2023 value-to-earnings ratio |
YoY change/ improvement |
|
South West |
£326,500 |
4.3 |
4.5 |
4.9% |
|
South East |
£408,400 |
4.9 |
5.1 |
4.8% |
|
East of England |
£364,700 |
4.4 |
4.6 |
4.8% |
|
Yorkshire and The Humber |
£199,500 |
2.8 |
2.9 |
4.3% |
|
East Midlands |
£241,100 |
3.2 |
3.4 |
4.0% |
|
London |
£560,800 |
5.8 |
6.0 |
3.4% |
|
Scotland |
£171,700 |
2.2 |
2.3 |
3.0% |
|
North West |
£209,700 |
2.9 |
3.0 |
2.6% |
|
West Midlands |
£245,900 |
3.4 |
3.4 |
2.1% |
|
Wales |
£215,400 |
3.1 |
3.1 |
2.0% |
|
North East |
£146,500 |
2.1 |
2.2 |
1.6% |
|
Great Britain |
£307,600 |
3.8 |
3.9 |
3.7% |
Source: Zoopla
Zoopla has uncovered the most affordable towns and cities within Britain to help those who plan to buy a home in the coming months. To calculate which areas are the most affordable, Zoopla analysed house value-to-earnings ratios, based on a two-earner household on an average salary for the local area.
Most affordable town in each region
|
Region |
Postal town |
Average house value (Oct 24) |
Estimated annual household income (Sept 2024) |
House value-to-earnings ratio |
|
East Midlands |
Gainsborough |
£170,000 |
£70,500 |
2.4 |
|
East of England |
Wisbech |
£209,800 |
£70,900 |
3.0 |
|
South East |
Dover |
£250,000 |
£79,300 |
3.2 |
|
South West |
Plymouth |
£222,200 |
£68,300 |
3.3 |
|
Wales |
Ferndale |
£101,600 |
£67,700 |
1.5 |
|
West Midlands |
Stoke-On-Trent |
£139,200 |
£62,100 |
2.2 |
|
Yorkshire and The Humber |
Hull |
£119,800 |
£62,200 |
1.9 |
|
London |
Croydon |
£417,800 |
£84,800 |
4.7 |
|
North East |
Shildon |
£73,200 |
£65,800 |
1.1 |
|
North West |
Workington |
£123,700 |
£76,900 |
1.6 |
|
Cumnock |
Scotland |
£80,300 |
£75,800 |
1.1 |
Source: Zoopla
Scotland and the North are home to the most affordable towns
Whilst the average home in Britain is valued at 3.8 times the local average annual household income, there are many areas where this ratio is much lower, making homes significantly more affordable.
Ayrshire, in the southwest of Scotland, has a particularly high concentration of affordable towns to buy, with the average home in the four most affordable parts of Ayrshire valued at less than 1.3 times the annual household income. Four out of five of Britain’s most affordable towns, Cumnock, Girvan, Saltcoats and Ardrossan, are located in this area. Cumnock is Britain’s most affordable town to buy, with average property values of £80,300, significantly below the UK average house price of £267,500. Shildon, Peterlee (both in county Durham) and Ashington (Northumberland) are the most affordable towns for buyers in England, with homes valued at less than 1.4 times local household incomes.
Affordability in southern England has improved:
Over the last 12 months, house prices fell by two-thirds in southern England (excluding London), with the largest improvements in affordability in the South East, South West and East of England. Wisbech in Cambridgeshire and the coastal towns of Dover (Kent) and Great Yarmouth (Norfolk) are the most affordable places to buy in the south of England with affordability ratios in these areas ranging between 3 and 3.2.
However, affordability remains a significant challenge for many looking to buy in southern England, with eight in ten towns typically valued at more than four times the annual household income. In Scotland, 88 per cent of towns have a house value-to-earnings ratio under three however there is only one town in southern England where houses are valued at less than three times local household earnings – Wisbech in Cambridgeshire. These stark differences illustrate a large gap in buyers’ affordability across Great Britain
Most affordable options for Londoners:
In London, Croydon has the lowest house value-to-earnings ratio of 4.7, well below the London average of 5.8. Greenwich, Barking and Dagenham, also see average homes valued at less than five times the local annual household income.
Those looking to stay close to London might consider the 33 towns within one hour of commuting distance to London terminals with lower value-to-household ratios than Croydon. The most affordable are Chatham (3.7), Southend (3.9) and Basingstoke (3.9).
Izabella Lubowiecka, senior property researcher at Zoopla, said: “Affordability remains a concern for many homebuyers so it is positive to see that there are areas of the UK, such as Southern England, where the affordability of housing has improved.
“London remains the least affordable area for home buyers. Those in London looking to get more for their money may want to consider buying in one of the South East and East of England’s commuter belt, where there are many towns that are more affordable than London. The same is true in markets around many regional cities and we see buyers seeking value for money. ”
Top five most affordable towns per region
|
Region |
Postal town |
Average house value (Oct 24) |
Estimated annual household income (Sept 2024) |
House value-to-earnings ratio |
|
East Midlands |
Gainsborough |
£170,000 |
£70,500 |
2.4 |
|
Worksop |
£175,100 |
£68,500 |
2.6 |
|
|
Alfreton |
£188,300 |
£72,800 |
2.6 |
|
|
Sutton-In-Ashfield |
£174,600 |
£65,400 |
2.7 |
|
|
Mansfield |
£181,600 |
£67,300 |
2.7 |
|
|
East of England |
Wisbech |
£209,800 |
£70,900 |
3.0 |
|
Great Yarmouth |
£212,300 |
£67,200 |
3.2 |
|
|
Peterborough |
£229,300 |
£72,400 |
3.2 |
|
|
Lowestoft |
£227,000 |
£70,100 |
3.2 |
|
|
Harwich |
£247,000 |
£74,700 |
3.3 |
|
|
South East |
Dover |
£250,000 |
£79,300 |
3.2 |
|
Sheerness |
£266,200 |
£78,100 |
3.4 |
|
|
Portsmouth |
£255,700 |
£71,300 |
3.6 |
|
|
Chatham |
£283,300 |
£78,000 |
3.6 |
|
|
Havant |
£279,600 |
£76,600 |
3.7 |
|
|
South West |
Plymouth |
£222,200 |
£68,300 |
3.3 |
|
Cinderford |
£256,000 |
£76,300 |
3.4 |
|
|
Camborne |
£232,100 |
£68,800 |
3.8 |
|
|
Weston-Super-Mare |
£274,700 |
£78,200 |
3.5 |
|
|
Swindon |
£272,700 |
£77,400 |
3.5 |
|
|
Wales |
Ferndale |
£101,600 |
£67,700 |
1.5 |
|
Mountain Ash |
£123,100 |
£67,700 |
1.8 |
|
|
Pentre |
£123,700 |
£67,700 |
1.8 |
|
|
Tonypandy |
£125,400 |
£67,700 |
1.9 |
|
|
Abertillery |
£119,900 |
£63,600 |
1.9 |
|
|
West Midlands |
Stoke-On-Trent |
£139,200 |
£62,100 |
2.2 |
|
Newcastle-under-Lyme |
£176,200 |
£70,100 |
2.5 |
|
|
Brierley Hill |
£193,000 |
£71,000 |
2.7 |
|
|
Leek |
£214,700 |
£75,900 |
2.8 |
|
|
Bilston |
£191,400 |
£67,600 |
2.8 |
|
|
Yorkshire and The Humber |
Hull |
£119,800 |
£62,200 |
1.9 |
|
Mexborough |
£145,800 |
£71,300 |
2.1 |
|
|
Immingham |
£150,100 |
£70,300 |
2.1 |
|
|
Halifax |
£163,900 |
£74,500 |
2.2 |
|
|
Bradford |
£144,100 |
£65,300 |
2.2 |
|
|
London |
Croydon |
£417,800 |
£84,800 |
4.7 |
|
Greenwich |
£439,000 |
£82,800 |
4.8 |
|
|
Barking & Dagenham |
£384,300 |
£71,400 |
5.0 |
|
|
Bexley |
£453,600 |
£87,600 |
5.0 |
|
|
Lewisham |
£452,000 |
£83,800 |
5.0 |
|
|
North East |
Shildon |
£73,200 |
£65,800 |
1.1 |
|
Ashington |
£95,100 |
£73,200 |
1.3 |
|
|
Peterlee |
£89,200 |
£65,800 |
1.4 |
|
|
Ferryhill |
£94,200 |
£65,800 |
1.4 |
|
|
Stanley |
£97,400 |
£65,800 |
1.5 |
|
|
North West |
Workington |
£123,700 |
£76,900 |
1.6 |
|
Birkenhead |
£119,400 |
£74,000 |
1.6 |
|
|
Maryport |
£127,400 |
£76,900 |
1.7 |
|
|
Fleetwood |
£127,500 |
£75,800 |
1.7 |
|
|
Bootle |
£125,200 |
£74,400 |
1.7 |
|
|
Scotland |
Cumnock |
£80,300 |
£75,800 |
1.1 |
|
Girvan |
£105,100 |
£88,400 |
1.2 |
|
|
Saltcoats |
£96,200 |
£77,100 |
1.3 |
|
|
Ardrossan |
£96,900 |
£77,100 |
1.3 |
|
|
Irvine |
£99,200 |
£77,100 |
1.3 |
Source: Zoopla
In response to Zoopla’s latest report revealing the most affordable towns and cities in Britain, Toby Leek, NAEA Propertymark president, commented: “Affordability for many is a real issue and as purse strings remain tightened despite easing factors such as slight drops in inflation, prospective and current homeowners will be looking to enter the market with caution, but also in some cases, further flexibility in where they nest themselves.
“As many people no longer have the restriction of basing themselves from a static office full time, they are able to look elsewhere to actually step onto the housing ladder for the first time or find their next, more affordable dream home.”
Tom Bill, head of UK residential research at Knight Frank, added: “Affordability will be the single biggest factor shaping house price growth in the UK over the next few years. Within the capital and around the country, demand is rising on the edge of traditionally popular locations as mortgage costs increase versus recent years and people establish their new work/life balance after the pandemic.”