Scotland and the North East of England account for 31 of the 36 most affordable towns in Britain, where typical home values remain below twice the combined annual earnings of two local full-time workers, according to new research from Zoopla.
The property portal’s analysis of 929 towns across Britain found that a typical home is valued at £299,100, equivalent to 4.3 times annual household earnings of £69,600. However, in the most affordable locations, this ratio falls to as low as 1.15 times earnings.
Regional disparities
Scotland accounts for 23 of the 36 locations, while the North East contributes eight, the North West four, and Wales one. At a regional level, the North East is the most affordable, with homes valued at 2.64 times local household earnings, followed by Scotland at 2.74, Yorkshire and the Humber at 3.28, the North West at 3.49, and Wales at 3.53.
The North East claims Britain’s three most affordable towns, all in County Durham. Shildon, a historic railway town, takes the top position with a typical home valued at £73,600, equivalent to 1.15 times annual household earnings of £64,000. Ferryhill follows at £91,500 (1.43 times earnings) and Peterlee at £96,500 (1.51 times earnings). These are the only three towns among the 929 analysed where typical home values fall below £100,000.
Coastal locations feature prominently
Scotland claims six of the remaining seven places in the top ten, with coastal locations featuring prominently. Fraserburgh, a fishing port on the Aberdeenshire coast, leads with a typical home valued at £116,000, equivalent to 1.59 times local household earnings. Peterhead, Irvine, Ardrossan, Saltcoats, and Methil also feature in the top ten, with typical home values ranging from £114,800 to £120,600.
Workington in west Cumbria ranks eighth nationally, with a typical home value of £114,900 (1.65 times household earnings). In Wales, Ferndale in the Rhondda Fach valley ranks 20th nationally, with a typical home value of £116,200 (1.82 times household earnings).
Southern regions remain less accessible
The affordability picture contrasts sharply with southern regions. The South East is Britain’s second least affordable region after London, with a typical home valued at £395,700, or 5.33 times household earnings. London remains the least affordable region, with a typical home valued at £524,100, or 6.11 times household earnings.
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.”
He added: “Affordability varies widely across the country, with many towns in northern England and Scotland offering much better value relative to local household earnings. However, lower house prices don’t always mean it’s easier to buy, as access to employment, deposits and mortgage costs remain important considerations.”
Market implications
Donnell noted that buyers have more homes to choose from than a year ago, with greater scope to negotiate on price, particularly in southern England. He advised potential buyers to reassess their options and consider expanding searches to neighbouring towns to improve buying prospects.
The findings highlight the persistent regional divide in UK housing affordability, with northern markets offering significantly better value propositions for first-time buyers and investors seeking lower entry points, while southern markets continue to face affordability challenges despite slower price growth relative to incomes.
