Shildon in County Durham has emerged as Britain's most affordable town to buy a home, with properties averaging around £73,600 at just 1.15 times a couple's annual salary, according to analysis by Zoopla. The findings reveal a stark divide in housing costs across Britain, with Scotland and northern England offering dramatically better value than the south-east and London. Ferryhill in the north-east came second with average prices of £91,500 at 1.43 times salary, while Peterlee, also in County Durham, ranked third with properties at £96,500 and a ratio of 1.51 times earnings.
The analysis examined 929 towns across Britain and found that 36 locations had home values below twice local household earnings. Scotland accounted for nearly two-thirds of these affordable towns, followed by the north-east of England, the north-west and Wales. Other towns in the top ten included Fraserburgh on the Aberdeenshire coast at £116,000 (1.59 times salary), Irvine in Scotland at £114,800 (1.62 times salary), and Workington in the north-west at £114,900 (1.65 times salary). Across all 929 towns analysed, the average home was valued at £299,100, equivalent to 4.3 times annual household earnings of around £69,600.
Southern regions showed markedly higher costs. In the south-east, Dover was the most affordable town at £206,300 (2.97 times earnings), while in the south-west, Bideford had average prices of £224,700 (3.35 times earnings). London remained the least affordable region, with a typical home valued at £524,100, or 6.11 times household earnings. Within the capital, Tower Hamlets was the most affordable location at £455,200 (4.91 times earnings), while Greenwich and Croydon both had ratios of 5.26 times earnings.
Richard Donnell, executive director at Zoopla, said house prices had risen more slowly than incomes in recent times, improving affordability, but noted that higher mortgage rates continued to offset gains by increasing monthly borrowing costs. He added that buyers had more homes available than a year earlier and greater scope to negotiate prices, particularly in southern England. Nathan Emerson, chief executive of Propertymark, highlighted that the Bank of England's decision to raise the base rate to 4 per cent would increase pressure on aspiring homeowners and create additional barriers to borrowing.
For borrowers considering a purchase, mortgage rates have jumped as conflict with Iran has driven up inflation expectations. Emerson cautioned that while lower house prices in northern towns offered real opportunities for first-time buyers, access to employment, deposits and mortgage costs remained important considerations. He encouraged buyers to expand searches beyond larger towns and cities to find better value, though he stressed the need for housing supply, infrastructure and economic opportunities to support sustainable communities in those areas.