Shildon in County Durham is Britain's most affordable town, with a typical property value of £73,600, equivalent to 1.15 times the combined annual earnings of two local full-time workers, according to new research from Zoopla.
The property website analysed 929 towns across Great Britain, finding that the typical home is worth £299,100, or 4.3 times combined annual earnings of £69,600. The analysis reveals a stark divide between northern and southern property markets, with Scotland and the North East dominating Britain's most affordable locations.
North East tops affordability rankings
The North East takes the top three places in Zoopla's affordability rankings, all in County Durham. Shildon leads with a typical property value of £73,600, followed by Ferryhill at £91,500 and Peterlee at £96,500. They are the only three towns among the 929 analysed where typical home values fall below £100,000.
Scotland accounts for 23 of the 36 towns where properties cost less than twice local household earnings. The North East accounts for eight, the North West four and Wales one. Fraserburgh is Scotland's most affordable town, with a typical property valued at £116,000, equivalent to 1.59 times household earnings. Workington leads the North West at £114,900, while Ferndale is Wales' most affordable town at £116,200.
Southern markets remain less affordable
The affordability gap widens considerably across southern England. The South East is Britain's second least affordable region after London, with a typical home valued at £395,700, equivalent to 5.33 times household earnings. Dover is the region's most affordable town, with an average property value of £206,300, or 2.97 times local household earnings.
In the South West, Bideford leads the rankings at £224,700, equivalent to 3.35 times earnings. Great Yarmouth is the most affordable location in the East of England, with a typical property value of £166,300 and a ratio of 2.72.
London remains the least affordable region overall, with the typical home valued at £524,100, equivalent to 6.11 times household earnings. Tower Hamlets is the capital's most affordable borough relative to local incomes, followed by Greenwich and Croydon, both at 5.26 times earnings.
Mortgage costs offset affordability gains
Zoopla said house prices have been rising more slowly than earnings, improving affordability on a price-to-income basis. However, higher mortgage rates mean buyers are not necessarily finding it easier to purchase a property.
Richard Donnell, executive director at Zoopla, said: "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."
Donnell said buyers now have more properties to choose from than a year ago, creating greater opportunities to negotiate. He added: "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."
For estate agents, the findings highlight how local affordability continues to influence buyer demand. While lower-priced markets offer greater purchasing power relative to earnings, agents in more expensive regions face the additional challenge of higher borrowing costs and stretched household budgets.
