The towns where a home costs two years’ earnings are revealed

Scotland and the North East of England dominate the list of most affordable towns to buy a property in.

New research from Zoopla has revealed the 36 British towns where a typical home is worth less than twice the combined annual earnings of two local full-time workers.

The 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 country’s most affordable locations, the relationship between household earnings and house prices varies significantly, falling to just 1.15 times earnings.

“Affordability varies widely across the country, with many towns in northern England and Scotland offering much better value relative to local household earnings.”

Scotland accounts for 23 of the 36 locations. 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 at 2.74, Yorkshire and the Humber at 3.28, the North West at 3.49, and Wales at 3.53, all below the national average of 4.3.

The North East claims Britain’s three most affordable towns, all in County Durham. Shildon, a historic railway town and home to the Locomotion museum, takes the top spot, with a typical home valued at just £73,600, equivalent to 1.15 times annual household earnings (£64,000).

It is followed by the former mining town of Ferryhill at £91,500 (1.43) and Peterlee, a post-war new town built to house East Durham’s mining communities, at £96,500 (1.51).

These are the only three towns among the 929 analysed where typical home values fall below £100,000.

Scotland claims six of the remaining seven places in Britain’s top ten, with coastal locations featuring prominently.

Fraserburgh, a historic fishing port on the Aberdeenshire coast known for its sandy beaches, leads the way, with a typical home valued at £116,000, equivalent to 1.59 times local household earnings. Fellow fishing port Peterhead also makes the top ten, alongside the Ayrshire coastal towns of Irvine, Ardrossan and Saltcoats, and Methil on the Fife coast. Typical home values across the six Scottish towns range from £114,800 to £120,600.

Elsewhere, Workington, a coastal town in west Cumbria with a history of coal mining and steelmaking, is the North West’s most affordable town, ranking eighth nationally, with a typical home value of £114,900 (1.65 times household earnings). In Wales, Ferndale, a former coal mining community in the Rhondda Fach valley, ranks 20th nationally, with a typical home value of £116,200 (1.82 times household earnings).

While buyers in Scotland and the North East can find towns where a typical home is valued at less than twice annual household earnings, the affordability picture is considerably different further south.

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.

Affordability gaps

Richard Donnell (pictured), Executive Director at Zoopla, 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. Anyone considering a move should take a fresh look at what they can afford and what’s available locally. Expanding a search to neighbouring towns could make a meaningful difference to their buying options.”

Richard Donnell is a Keynote Speaker at this year’s Negotiator Conference, on 27th November. Tickets are still available.