Zoopla has compiled league tables of the most affordable locations in Britain.

The portal says that on average, two earners looking to buy a home can still expect to pay 4.4 times their average combined annual earnings – slightly lower than 4.5 times in 2024 – but areas like Scotland and the North East of England offer much better value.

To calculate which areas are the most affordable, Zoopla analysed house price-to-earnings ratios, based on a two-earner household on average earnings for the local area and compared this to the average house price in the same area.

A clear North-South divide

The most affordable town to buy a home in all of Great Britain is Shildon in the North East. An average home in the town in County Durham costs just over a year’s combined pay for two household earners, with median home value standing at just £73,900.

Ten most affordable towns in the UK

Town Region Median home value Estimated annual household income House value-to-earnings ratio 1: Shildon North East £73,800 £60,300 1.23 2: Cumnock Scotland £83,700 £67,200 1.5 3: Saltcoats Scotland £96,500 £70,400 1.37 4: Ardrossan Scotland £100,050 £70,400 1.42 5: Peterlee North East £85,900 £60,300 1.42 6: Irvine Scotland £101,100 £70,400 1.44 7: Kilwinning Scotland £102,600 £70,400 1.46 8: Ferryhill North East £92,500 £60,300 1.53 9: Girvan Scotland £107,300 £69,000 1.56 10: Clydebank Scotland £105,800 £64,900 1.63

Source: Zoopla

The findings reveal a striking geographic polarisation in UK housing affordability. Scotland dominates the list of the UK’s most affordable towns, claiming a remarkable seven of the ten spots whilst the remaining three positions are secured by the North East of England. 

Conversely, the market’s disparity is underscored by the bottom of the list, with eight of the ten least affordable towns located in the South East of England.

At the other end of the affordability spectrum, Beaconsfield, in Buckinghamshire, tops the list as the least affordable UK town with a house price-to-earnings ratio of 15.25 – meaning a median priced home costs more than 15 times the estimated average household income, at £1,112,000. 

Other towns that are least affordable to average earners include Gerrards Cross and Esher, both located in the South East and within commutable distance to London. With house price-to-earnings ratios in these areas topping even the most expensive London boroughs, homebuyers are paying a premium for quiet countryside locations, a stone’s throw from the capital.

Most affordable town in each region 

Region Town Median home value Estimated annual household income House price-to-earnings ratio North East Shildon £73,900 £60,300 1.23 Scotland Cumnock £83,700 £67,200 1.25 Wales Ferndale £105,300 £60,500 1.74 North West Workington £123,300 £68,700 1.8 Yorkshire and the Humber Mexborough £152,000 £63,200 2.41 East Midlands Gainsborough £171,600 £62,400 2.75 West Midlands Newcastle- Under-Lyme £182,200 £63,300 2.88 South West Cinderford £253,800 £74,300 3.42 South East Dover £242,500 £68,400 3.55 East of England Great Yarmouth £210,300 £58,500 3.6 London Tower Hamlets £455,400 £91,700 4.97

Source: Zoopla

Furthermore, the list of most affordable towns in each region of the UK highlights the scale of the affordability pressures on potential homeowners in the South of England. 

For instance, even in the most affordable towns in the South East and South West – Dover and Cinderford – a median-priced home still demands that prospective buyers can afford more than three and a half times their annual combined salary. 

This ratio underscores the affordability challenge for those on single earner incomes in even the most competitively priced areas of Southern England. The cost of home ownership is also a key factor behind the rapid rise in rents across the country. 

Most affordable options for Londoners

In London, there is a huge range in house price-to-earnings ratios. 

Tower Hamlets tops the list for affordability in the capital, with a price-to-earnings ratio of 4.97 reflecting higher incomes of those who live locally and a large supply of apartments in the local area.  However, the affordability of homes in Tower Hamlets is still four times worse than the most affordable areas of the UK like Shildon in the North East. 

In line with general trends, the majority of the affordable boroughs in London are found in Outer London. However, three Inner London boroughs – Tower Hamlets, Southwark and Lambeth – are exceptions to this. Whilst property prices in these areas are still relatively high, the area boasts above-average local earnings and a greater quantity of homes – largely dominated by flats. 

These factors combine to lower the house price-to-earnings ratio, bringing it more in line with Outer London boroughs. 

Most affordable London boroughs

Borough Median home value Estimated annual household income House price-to-earnings ratio Tower Hamlets £455,400 £91,700 4.97 Croydon £423,400 £77,300 5.48 Greenwich £448,800 £81,200 5.53 Lewisham £448,100 £80,200 5.59 Southwark £491,500 £87,300 5.63 Havering £467,900 £82,700 5.66 Barking and Dagenham £391,100 £66,800 5.86 Lambeth £522,400 £88,600 5.89 Merton £530,600 £88,300 6.12 Bromley 546,100 89,300 6.12

Source: Zoopla

Richard Donnell, Executive Director at Zoopla comments: “To have the most affordable town, Shildon in the North East, requiring barely more than one year’s local pay, contrasted against Beaconsfield where the cost is over 15 times average earnings, shows the challenges facing those looking to move home. 

“Homes are most affordable across Scotland and the North East, but within these regions are pockets where affordability is a challenge. For those looking to buy in the South, there are areas which offer reasonably priced homes compared to local incomes, but there are large areas where homes are only affordable to those on higher incomes or with larger deposits.

“The affordability of home ownership and the cost of moving are big considerations for those planning their next move. The days of most people moving within five miles of where they live are over.  

“We can see that a growing number of buyers are having to look further afield to find better value for money and they need the tools to make informed buying decisions.”