A new analysis has identified Britain's most affordable towns, where a couple can still purchase a home for less than twice their combined annual earnings. Shildon in County Durham tops the list, with average property prices of approximately £73,600, representing just 1.15 times the local salary for a full-time working couple.
Ferryhill, also in County Durham, ranked second with average property prices of £91,500 and a house price-to-earnings ratio of 1.43. Peterlee, completing County Durham's strong showing, was third, with average prices at £96,500 and a ratio of 1.51. These three towns are all located in the north-east of England and feature typical home values below £100,000.
Several towns in Scotland also ranked highly for affordability. Fraserburgh on the Aberdeenshire coast had property valuations around £116,000, with a ratio of 1.59. Irvine in Scotland was found to be the fifth most affordable, with prices at approximately £114,800 and a ratio of 1.62. Other Scottish towns like Peterhead, Ardrossan, Methil, and Saltcoats, along with Workington in the north-west of England, also featured in the top 10.
Across Britain, the average home value stands at £299,100, which is equivalent to 4.3 times the average annual household earnings of around £69,600. Scotland accounted for nearly two-thirds of the 36 towns where home values were less than twice local household earnings, followed by the north-east of England, the north-west, and Wales.
In contrast, southern England presents a significant affordability gap. Dover in the south-east was the most affordable town in the region, with average property prices at £206,300 and a ratio of 2.97. In the south-west, Bideford offered homes at around £224,700, or 3.35 times local earnings. London remains the least affordable region, with the borough of Tower Hamlets being the most accessible location at an average home cost of £455,200, a ratio of 4.91. The south-east was the second least affordable region, with typical homes valued at £395,700, or 5.33 times annual earnings.
Experts note that while house prices have been rising more slowly than incomes, improving affordability, higher mortgage rates are offsetting some of these gains by increasing monthly costs. Buyers are increasingly looking beyond larger towns and cities for better value, though access to employment, deposits, and mortgage costs remain critical factors.
The Bank of England's recent base rate increase to 4 percent could further pressure borrowing costs for aspiring homeowners. Estate agents suggest that buyers are expanding their search to neighbouring towns to find more affordable options, highlighting the need for sufficient housing supply, infrastructure, and economic opportunities in these areas to support sustainable communities and homeownership.