Skip to content

Least expensive UK towns for property purchase

UK Research by Zoopla Highlights Areas With More Affordable House Prices Relatively to Local Income Levels

Least expensive UK localities for property investment
Least expensive UK localities for property investment

Least expensive UK towns for property purchase

In the current housing market, the North of England, particularly Teesside and the North East, stands out as the most affordable region for home buyers. This is evident from the house price-to-earnings ratio, a key indicator that reflects the affordability of properties in different regions.

Gainsborough in the East Midlands, for instance, has an average house price of £170,000 and a house price-to-earnings ratio of 2.4. In comparison, Hull in Yorkshire and The Humber has an average house price of £119,800 and a house price-to-earnings ratio of 1.9. These figures are significantly lower than those in London and the Greater South East, where the ratio is around 4.9.

London, along with southern England, is home to the least affordable properties. However, the gap is narrowing, with areas like Chatham, within commuting distance of London, becoming more affordable. Chatham has a house value-to-earnings ratio of 3.7.

Cumnock, located in Ayrshire, Scotland, takes the crown as Britain's most affordable town to buy, with average property values of £80,300. Ferndale in Wales follows closely with an average house price of £101,600 and a house price-to-earnings ratio of 1.5.

The average house price in the UK is 3.8 times the average annual household income to get on the property ladder. Single homebuyers in the UK can expect to pay 7.6 times their annual income on average.

Demand for homes is rising on the edge of traditionally popular locations due to increasing mortgage costs. This trend is particularly noticeable in areas like Stoke-On-Trent in the West Midlands, which has an average house price of £139,200 and a house price-to-earnings ratio of 2.2.

Eight in 10 towns across southern England are typically valued at more than four times the annual household income. In contrast, 88% of towns in Scotland have a house value-to-earnings ratio below three.

Affordability will be the single biggest factor shaping house price growth in the UK over the next few years. Slower house price growth and higher wages in 2024 have slightly improved the house price-to-earnings ratio from 3.9.

Croydon in London has the lowest house value-to-earnings ratio in the capital at 4.7, well below the London average of 5.8. Southend and Basingstoke have house value-to-earnings ratios of 3.9, making them relatively affordable options for Londoners.

In the East of England, Wisbech has an average house price of £209,800 and a house price-to-earnings ratio of 3. Plymouth in the South West has an average house price of £222,200 and a house price-to-earnings ratio of 3.3.

Shildon, Peterlee (both in county Durham), and Ashington (in Northumberland) are the most affordable towns for buyers in England, with homes valued at less than 1.4 times local household incomes.

House price-to-earnings ratios provide an indication of what property buyers can afford based on their salary and household income. They offer a valuable tool for potential homebuyers to make informed decisions about where to live and what properties they can realistically afford.

  1. Lifestyle choices and investing in real estate can significantly impact personal finance, as house price-to-earnings ratios show that properties in certain regions, like Teesside and the North East, are more affordable for home buyers compared to southern England and London.
  2. In the UK, the gap between property affordability in London and other regions is notable, with London having the least affordable properties, while Cumnock in Ayrshire, Scotland, stands out as the most affordable town.
  3. Affordability in the housing market appears to be a deciding factor in house price growth over the next few years, and house price-to-earnings ratios offer a useful tool for potential homebuyers to make informed decisions about their property investments.
  4. Buyers in England can find more affordable options in towns like Shildon, Peterlee, and Ashington, where homes are valued at less than 1.4 times local household incomes, compared to the national average house price that is 3.8 times the average annual household income to get on the property ladder.

Read also:

    Latest