Zoopla reveals most affordable towns in Britain

November 14, 2024

With the average home valued at nearly four times average household incomes, Zoopla reveals the most affordable towns in Britain

 

  • An average property in Britain is valued at 3.8 times the average annual household income (assuming 2 full-time workers)

  • Cumnock in Scotland, is Britain’s most affordable town to buy in 2024 with average property values of £80,300, significantly below the UK average house price of £267,500

  • Affordability  ratios have improved by up to 5 per cent in some areas of southern England, but eight in ten British towns are still valued at more than four times local household average incomes

  • Wisbech in Cambridgeshire is the most affordable town to buy in southern England with average property values of £209,800

  • There are 33 towns within one hour’s commuting distance of London where affordability ratios sit below the London average of 5.8

 

UNDER EMBARGO UNTIL 00.01 THURSDAY 14TH NOVEMBER, 2024, London: Latest research1 from Zoopla, one of Britain’s leading property portals has revealed that despite annual earnings growing by 3.7 per cent over the last 12 months, outpacing house price growth, UK homebuyers can still expect to pay 3.8 times average annual household incomes. Furthermore, the 35 per cent of homebuyers who are single, will expect to pay 7.6 times their annual income on average.

 

Table 1: YoY change in affordability ratios by region

Region

Average house value (Oct 24)2

2024 value-to-earnings ratio

2023 value-to-earnings ratio

YoY change/ improvement

South West

£326,500

4.3

4.5

4.9%

South East

£408,400

4.9

5.1

4.8%

East of England

£364,700

4.4

4.6

4.8%

Yorkshire and The Humber

£199,500

2.8

2.9

4.3%

East Midlands

£241,100

3.2

3.4

4.0%

London

£560,800

5.8

6.0

3.4%

Scotland

£171,700

2.2

2.3

3.0%

North West

£209,700

2.9

3.0

2.6%

West Midlands

£245,900

3.4

3.4

2.1%

Wales

£215,400

3.1

3.1

2.0%

North East

£146,500

2.1

2.2

1.6%

Great Britain

£307,600

3.8

3.9

3.7%

Source: Zoopla

 

Zoopla has uncovered the most affordable towns and cities within Britain to help those who plan to buy a home in the coming months. To calculate which areas are the most affordable, Zoopla analysed house value-to-earnings ratios, based on a two-earner household on an average salary for the local area.

 

Table 2: Most affordable town in each region

Region

Postal town

Average house value (Oct 24)

Estimated annual household income (Sept 2024)

House value-to-earnings ratio

East Midlands

Gainsborough

£170,000

£70,500

2.4

East of England

Wisbech

£209,800

£70,900

3.0

South East

Dover

£250,000

£79,300

3.2

South West

Plymouth

£222,200

£68,300

3.3

Wales

Ferndale

£101,600

£67,700

1.5

West Midlands

Stoke-On-Trent

£139,200

£62,100

2.2

Yorkshire and The Humber

Hull

£119,800

£62,200

1.9

London

Croydon

£417,800

£84,800

4.7

North East

Shildon

£73,200

£65,800

1.1

North West

Workington

£123,700

£76,900

1.6

Cumnock

Scotland

£80,300

£75,800

1.1

Source: Zoopla

 

Scotland and the North are home to the most affordable towns

 

Whilst the average home in Britain is valued at 3.8 times the local average annual household income, there are many areas where this ratio is much lower, making homes significantly more affordable.

 

Ayrshire, in the southwest of Scotland, has a particularly high concentration of affordable towns to buy, with the average home in the four most affordable parts of Ayrshire valued at less than 1.3 times the annual household income. Four out of five of Britain’s most affordable towns, Cumnock, Girvan, Saltcoats and Ardrossan, are located in this area. Cumnock is Britain’s most affordable town to buy, with average property values of £80,300, significantly below the UK average house price of £267,500. Shildon, Peterlee (both in county Durham) and Ashington (Northumberland) are the most affordable towns for buyers in England, with homes valued at less than 1.4 times local household incomes.

 

Affordability in southern England has improved

 

Over the last 12 months, house prices fell by two-thirds in southern England (excluding London), with the largest improvements in affordability in the South East, South West and East of England. Wisbech in Cambridgeshire and the coastal towns of Dover (Kent) and Great Yarmouth (Norfolk) are the most affordable places to buy in the south of England with affordability ratios in these areas ranging between 3 and 3.2.

 

However, affordability remains a significant challenge for many looking to buy in southern England, with eight in ten towns typically valued at more than four times the annual household income. In Scotland, 88 per cent of towns have a house value-to-earnings ratio under three however there is only one town in southern England where houses are valued at less than three times local household earnings – Wisbech in Cambridgeshire. These stark differences illustrate a large gap in buyers’ affordability across Great Britain

 

Most affordable options for Londoners

 

In London, Croydon has the lowest house value-to-earnings ratio of 4.7, well below the London average of 5.8. Greenwich, Barking and Dagenham, also see average homes valued at less than five times the local annual household income.

 

Those looking to stay close to London might consider the 33 towns within one hour of commuting distance to London terminals with lower value-to-household ratios than Croydon. The most affordable are Chatham (3.7), Southend (3.9) and Basingstoke (3.9).

 

Izabella Lubowiecka, Senior Property Researcher at Zoopla comments: “Affordability remains a concern for many homebuyers so it is positive to see that there are areas of the UK, such as Southern England, where the affordability of housing has improved.

 

“London remains the least affordable area for home buyers. Those in London looking to get more for their money may want to consider buying in one of the South East and East of England’s commuter belt, where there are many towns that are more affordable than London. The same is true in markets around many regional cities and we see buyers seeking value for money. ”

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