More than half of family homes now within reach as affordability improves
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The proportion of two and three-bed houses that are affordable has increased from 45 per cent in 2025 to 51 per cent in 2026, putting more homes within reach of households earning the average income of £53,500
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A household on an average combined income of £53,500 can now afford a home listed at up to £301,000
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The North East (83 per cent), Scotland (80 per cent) and Yorkshire and the Humber (76 per cent) have the most houses that are affordable.
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The South West (up 10 per cent) and the East of England (up nine per cent) saw the proportion of homes that are affordable improve the most
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Affordability is still limited in the South East (23 per cent) and London (fewer than 100 houses)
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In the 51 hotspot towns, the average asking price is around £189,000. Every two and three-bed house for sale in Keith, Alloa, Kilwinning and Arbroath is affordable
New analysis from Zoopla, one of the UK’s leading property websites, reveals that over half (51 per cent) of two and three-bed houses for sale in Britain are listed at a price a household on an average income can afford, up six percentage points from 2025.
A household on an average combined income of £53,500 can now afford a home listed at up to £301,000. This assumes a mortgage of 4.5 times their gross annual income and a 20 per cent deposit. However, while affordability is improving and buyers have more choice, more would-be movers remain cautious about moving. Average mortgage rates now exceed five per cent, having started the year at just four per cent and sales agreed are nine per cent lower than a year ago2 as uncertainty weighs on buyer confidence.
Improvements in affordability seen in the south
The biggest improvements over the last 12 months have been in southern and eastern regions where income growth, more homes listed for sale, and flat to falling house prices have brought more properties within reach of buyers. The South West has recorded the greatest improvement for buyers, with the proportion of houses that are affordable rising by 10 percentage points to 47 per cent, followed by the East of England (nine percentage points). Northern regions have seen smaller increases, largely because a greater proportion of houses were already more affordable.
Despite these improvements, affordability is still a constraint on buyers in some southern regions. In the South East, just 23 per cent of two and three-bed houses fall under the affordability threshold, while the average asking price stands at £375,000. London remains the least affordable market by a considerable margin, with fewer than 100 two and three-bed houses priced below £301,000.
Table 1: Availability of two and three-bed houses that are affordable by region
|
Region |
Affordable houses (nearest 100) |
Share 2026 |
Share 2025 |
Change (percentage points) |
Average asking price |
|---|---|---|---|---|---|
|
North East |
4,300 |
83% |
82% |
+1.6 |
£155,000 |
|
Scotland |
3,300 |
80% |
76% |
+3.6 |
£207,500 |
|
Yorkshire and The Humber |
10,400 |
76% |
71% |
+5.4 |
£210,000 |
|
East Midlands |
12,600 |
74% |
66% |
+7.9 |
£227,500 |
|
Wales |
7,400 |
72% |
66% |
+6.2 |
£219,500 |
|
North West |
10,300 |
71% |
67% |
+4.5 |
£217,500 |
|
West Midlands |
9,800 |
64% |
57% |
+7.1 |
£245,000 |
|
South West |
10,500 |
47% |
38% |
+9.8 |
£290,000 |
|
East of England |
8,500 |
39% |
30% |
+9.2 |
£317,500 |
|
South East |
7,100 |
23% |
16% |
+7.7 |
£375,000 |
|
London |
<100 |
0.5% |
0.4% |
+0.1 |
£542,500 |
|
Great Britain |
84,300 |
51% |
45% |
+5.7 |
£293,200 |
Source: Zoopla 2026
The North East remains the most affordable region, with 83 per cent of two and three-bed houses for sale priced below the £301,000 affordability threshold. These houses are listed at an average of £155,000, around half the threshold. Scotland (80 per cent) and Yorkshire and the Humber (76 per cent) also offer buyers a much wider choice of houses that are affordable.
Affordability hotspots where buyers have the greatest choice
At a more local level, there are hotspots in each region where buyers have a much wider choice of affordable two and three-bed houses. Across the 50 towns identified, the average asking price for a two or three-bed house is around £189,000, more than £100,000 below the national average of £293,200.
In Scotland, every two and three-bed house currently listed for sale in Keith, Alloa, Kilwinning and Arbroath falls below the £301,000 affordability threshold. Bootle in the North West (98 per cent), Treorchy and Newtown in Wales (both 97 per cent) and Immingham in Yorkshire and the Humber (95 per cent) also rank among the country’s most affordable locations.
Despite its reputation for high property prices, there are also pockets of affordability in southern England. In the South East, East Cowes on the Isle of Wight leads the way, with 77 per cent of two and three-bed houses priced below the threshold, while Leiston in Suffolk (87 per cent) and Par in Cornwall (83 per cent) top the rankings in the East of England and South West respectively.
Table 2: Top five towns for two and three-bed houses that are affordable by region
|
Region |
1st |
2nd |
3rd |
4th |
5th |
|---|---|---|---|---|---|
|
North East |
Billingham 94% |
Spennymoor 93% |
Hebburn 93% |
Blaydon-on-Tyne 92% |
Ashington 92% |
|
North West |
Bootle 98% |
Whitehaven 97% |
Accrington 94% |
Workington 94% |
Thornton-Cleveleys 94% |
|
Yorkshire and the Humber |
Immingham 95% |
Withernsea 94% |
Hull 93% |
Scunthorpe 90% |
Driffield 89% |
|
East Midlands |
Sutton-in-Ashfield 92% |
Worksop 90% |
Corby 89% |
Ripley 88% |
Mansfield 87% |
|
West Midlands |
Brierley Hill 92% |
Wednesbury 88% |
West Bromwich 85% |
Bilston 82% |
Rowley Regis 82% |
|
East of England |
Leiston 87% |
Brandon 86% |
Lowestoft 85% |
Wisbech 81% |
Harwich 80% |
|
South East |
East Cowes 77% |
Sandown 76% |
Totland Bay 73% |
Southsea 73% |
Sheerness 70% |
|
South West |
Par 83% |
Liskeard 79% |
Ilfracombe 76% |
Camborne 74% |
Plymouth 73% |
|
Wales |
Treorchy 97% |
Newtown 97% |
Pentre 96% |
Mountain Ash 93% |
Porth 93% |
|
Scotland |
Keith 100% |
Alloa 100% |
Kilwinning 100% |
Arbroath 100% |
Elgin and Buckie 98% (joint) |
|
London |
Not ranked |
||||
Source: Zoopla 2026
Many of these hotspots are established communities close to major employment centres, including Bootle near Liverpool, Hebburn and Blaydon-on-Tyne near Newcastle and several towns across the West Midlands’ Black Country.
Coastal towns also feature prominently, from Whitehaven and Workington in Cumbria to Lowestoft in Suffolk and Ilfracombe in Devon. Meanwhile, four of Wales’s five hotspots are in the South Wales Valleys, including Treorchy, Pentre and Mountain Ash.
Importantly for potential buyers, affordability does not have to come at the expense of choice. With an average of around 90 two and three-bed houses listed for sale in each hotspot, buyers have a meaningful selection of properties within their budget rather than just a handful of cheaper houses.
Richard Donnell, Executive Director at Zoopla, says, “The number of two and three-bedroom houses within reach of households on an average income has increased as incomes continue to rise faster than house prices. However, the impact is being offset by higher mortgage rates which are adding to the monthly costs of taking out a new mortgage.
“The extra cost for buyers is greater in southern regions where house prices are higher and this affordability divide is seen across the country. More than two thirds of houses in northern England and Scotland are now affordable to the average household while this drops to less than a fifth in London and South East England .
“We expect house prices to continue to rise more slowly than incomes which will continue to help improve the affordability of housing. A greater choice of homes for sale is supporting a buyers market and means that sellers are having to be more realistic on price. Anyone considering a move should take a fresh look at what they can afford and what’s available locally. Waiting for mortgage rates to fall further may not necessarily put them in a better position to buy.”
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