The 10 most affordable towns for home ownership in Britain have been revealed, with all of them located in Northern England and Scotland. According to analysis by Lloyds, home affordability has reached its most favourable level in more than a decade.
The bank based its ranking on average house price-to-earnings ratios. Lloyds calculated that the average UK home now costs around 7.3 times average earnings, the lowest price-to-earnings ratio since 2015 and down from 7.6 a year ago.
Wage growth outpaces house prices
The analysis found that the overall rate of wage growth has outpaced house price increases over the past year, based on comparisons between April to June 2026 and the same period in previous years.
While the ratio fell significantly from 9.7 to 9.1 in the South East and from 10.9 to 10.3 in London, these two regions remained the most unaffordable in Lloyds' ranking.
Cheapest locations for home buyers
Andrew Asaam, mortgages director at Lloyds, urged buyers to consider a change of location for a "big difference" in cost. He said: "There are some encouraging signs for people looking to buy a home. Wages have continued to rise while house prices have remained relatively stable, helping to narrow the gap between earnings and house prices."
"For first-time buyers in particular, a small shift in location could make a big difference, not just in getting on the ladder, but in what kind of property is within reach. Many parts of Scotland and Northern England continue to offer some of the best value relative to local earnings. For buyers with flexibility over where they live, that can make a meaningful difference to what they can afford."
The full list of most affordable towns
Inverclyde, Scotland – average house price £146,030, price-to-earnings ratio 3.5.
Aberdeen, Scotland – average house price £147,851, price-to-earnings ratio 3.5.
Kingston upon Hull, Yorkshire and the Humber – average house price £134,642, price-to-earnings ratio 3.6.
Blackpool, North West – average house price £141,550, price-to-earnings ratio 3.6.
Dundee, Scotland – average house price £152,072, price-to-earnings ratio 3.6.
Dumfries and Galloway, Scotland – average house price £153,360, price-to-earnings ratio 3.7.
North East Lincolnshire, Yorkshire and the Humber – average house price £138,543, price-to-earnings ratio 3.7.
Angus, Scotland – average house price £160,928, price-to-earnings ratio 3.9.
Middlesbrough, North East – average house price £139,678, price-to-earnings ratio 3.9.
East Ayrshire, Scotland – average house price £162,459, price-to-earnings ratio 3.9.
