10 British towns where a home costs two years’ earnings
Research from online property platform Zoopla has revealed the most affordable towns in Britain, where a home costs less than two years’ worth of household earnings.
On average, the typical home in Great Britain costs 4.3 times the average annual household earnings, placing homeownership out of reach for many in the country.
By contrast, the price of a home in Shildon, Britain’s most affordable town, is just 1.15 times the average yearly household earnings in the area.
Britain’s property market differs wildly based on location, with properties in the South of England and London being far more expensive and less affordable than homes in Scotland and the North East, even when accounting for the higher salaries in these areas.
Of a total of 36 towns which Zoopla identified where the typical home is less than two years’ household earnings, almost two thirds were in Scotland, with the majority of the rest in the North East and North West of England.
The most affordable towns in Britain
The three most affordable towns in Britain are all in County Durham, all with prices below £100,000: Shildon, Ferryhill, and Peterlee.
At a regional level, the North East is the most affordable region, 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.
All of these regions are below the national average price-to-household earnings ratio of 4.3.
Below are the ten most affordable towns in Britain, according to research from Zoopla.
| 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 |
The least affordable region for British homebuyers is London and the South East. In London, the typical home is valued at £524,100, which is 6.1 times the average annual household earnings.
“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,” said Zoopla executive director Richard Donnell.
“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,” he said.
