Zoopla’s new research reveals the 36 British towns where a typical home is worth less than twice the combined annual earnings of two local full-time workers.
The latest research found that a typical home is valued at £299,100, equivalent to 4.3 times annual household earnings, which is £69,600.
However, in the country’s most affordable locations, the relationship between household earnings and house prices varies significantly, falling to just 1.15 times earnings.
Scotland accounts for almost two-thirds of the 36 towns where home values are less than twice local household earnings, followed by the North East of England, the North West and Wales.
The North East follows with eight, the North West with four and Wales with 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 (2.74), Yorkshire and the Humber (3.28), the North West (3.49) and Wales (3.53), all below the national average of 4.3.
Meanwhile, 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. Dover, Kent, is the region’s most affordable location with homes priced at £206,300 (2.97 times household earnings), placing it 187th nationally.
In the South West, where homes cost 4.87 times household earnings, the historic harbour town of Bideford in North Devon takes the top spot. The town has a typical home value of £224,700 (3.35 times household earnings), ranking 275th nationally.
London remains the least affordable region, with a typical home valued at £524,100, or 6.11 times household earnings.
Tower Hamlets, spanning parts of London’s traditional East End and the financial district of Canary Wharf, is the capital’s most affordable borough relative to local incomes, although homes still cost £455,200 (4.91 times household earnings).
Greenwich and Croydon follow, both at 5.26 times household earnings, demonstrating the considerable affordability gap between the capital and Britain’s cheapest towns.
Zoopla executive director Richard Donnell says: “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.”
“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.”
“Buyers have more homes to choose from than a year ago, and there is greater scope to negotiate on price, particularly in southern England.”
Also commenting, Propertymark chief executive Nathan Emerson adds: “These findings highlight the significant differences in housing affordability across the UK, with some towns offering real opportunities for buyers, particularly those looking to get onto the property ladder.”
“However, low house prices alone do not guarantee affordability. Local wages, employment opportunities, deposit requirements and mortgage costs all influence whether people can realistically buy.”
“Yesterday’s decision by the Bank of England to increase the base rate to 4% adds further pressure, potentially increasing borrowing costs and creating another barrier for aspiring homeowners.”
