Zoopla maps affordability across 36 British towns

Buyers comparing towns in Britain face substantial differences between house prices and affordability relative to local earnings. Zoopla's analysis of 929 towns identified 36 locations where a typical home costs less than twice the combined annual earnings of two local full-time workers, according to The Independent. Its national benchmark was a typical home value of £299,100, equal to 4.3 times annual household earnings of £69,600, according to Mortgage Strategy.

Location or benchmark	Home value or earnings	Property-to-earnings ratio	Zoopla research source
Britain benchmark	£299,100	4.3	Mortgage Strategy
Two full-time workers' annual earnings	£69,600	Baseline	Mortgage Strategy
Shildon	£73,600	1.15	Mirror
Ferryhill	£91,500	1.43	Mirror
Tower Hamlets	£455,200	4.91	Mortgage Strategy
London	£524,100	6.11	Mortgage Strategy
Dover	£206,300	2.97	Mortgage Strategy
Bideford	£224,700	3.35	Mortgage Strategy

Scotland leads the 36 lower-cost locations

Shildon in County Durham was the most affordable town, with homes costing 1.15 times the annual wages of two full-time workers (The Mirror). Scotland accounted for 23 of the 36 locations, while the North East of England contained eight and the North West contained four; Wales supplied the remaining town.

Irvine was listed at 1.62, while three locations shared a ratio of 1.65: Peterhead, Ardrossan and Workington.

At a regional level, the North East had the lowest property-to-earnings ratio at 2.64, followed by Scotland at 2.74, Yorkshire and the Humber at 3.28, the North West at 3.49 and Wales at 3.53. Zoopla's regional list also identified Kingston upon Hull at £131,400 and 2.16 times earnings, Stoke-on-Trent at £160,700 and 2.64 times, and Great Yarmouth at £166,300 and 2.72 times.

Bideford in North Devon was the most affordable location in the South West, where the regional ratio was 4.87. Its typical home value was £224,700, equal to 3.35 times household earnings. The research considered only postal towns with at least 5,000 homes.

The lower end of the 36-town ranking also included Airdrie at £141,500 and 1.95 times earnings, Thornaby at £125,500 and 1.97, and Grangemouth and Stranraer at 1.98 each. Hawick, Tranmere and Kilsyth were each listed at 1.99. Ferndale, the Welsh location, had a typical home value of £116,200 and a ratio of 1.82.

London stays at 6.11 times earnings

London remained Britain's least affordable region, with a typical home valued at £524,100, or 6.11 times household earnings. Tower Hamlets was the capital's most affordable borough relative to local incomes, although its typical home value of £455,200 was still equal to 4.91 times household earnings.

Greenwich and Croydon followed Tower Hamlets, both recording ratios of 5.26 times earnings. In the South East, the typical home value was £395,700, equivalent to 5.33 times earnings, while Dover was the region's most affordable location at £206,300 and 2.97 times earnings.

A 4% base rate adds pressure

“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.” — Richard Donnell, executive director at Zoopla

Propertymark chief executive Nathan Emerson said low house prices do not by themselves guarantee affordability because local wages, employment opportunities, deposit requirements and mortgage costs affect whether people can realistically buy. He said the findings highlighted significant affordability differences across the UK, with some towns offering opportunities for buyers seeking to enter the property market.

Zoopla's analysis also found that buyers had more homes to choose from than a year earlier and greater scope to negotiate on price, particularly in southern England. Donnell said prospective buyers should reassess what they could afford and what was available locally, adding that extending a search to neighbouring towns could make a meaningful difference to their buying options.

Further reading: flood risk and England's mortgage market. Propertymark's comment said that the Bank of England had increased its base rate to 4%.