New data shows Shildon in County Durham offers the lowest average property value relative to local incomes, making homeownership more accessible.
County Durham towns lead affordability index
Property site Zoopla has identified 36 towns across Britain where homes are most affordable. Shildon, a town in County Durham, emerged as the top location on this list.
The average property value in Shildon stands at just GBP73,600. This figure is significantly lower than the national average of GBP299,100, which was calculated across 929 towns analysed.
Zoopla’s analysis compared average property values against the combined annual earnings of two full-time workers. In Shildon, a home costs just 1.15 times the local household income, a stark contrast to the national average of 4.3 times income.
Scotland features prominently on the affordable list, accounting for 23 of the 36 locations. The North East of England contributed eight towns, the North West four, and Wales one. Richard Donnell, an executive director at Zoopla, noted that slower house price growth compared to incomes is improving affordability.
Key affordability figures
Zoopla’s analysis provides a clear picture of housing affordability across Britain, highlighting specific towns where property values are significantly lower relative to local earnings.
- Shildon, County Durham: Average home value GBP73,600; 1.15 times combined annual earnings.
- Ferryhill, County Durham: Average home value GBP91,500; 1.43 times combined annual earnings.
- Peterlee, County Durham: Average home value GBP96,500; 1.51 times combined annual earnings.
- Fraserburgh, Scotland: Average home value GBP116,000; 1.59 times combined annual earnings.
- Irvine, Scotland: Average home value GBP114,800; 1.62 times combined annual earnings.
- National average property value across 929 towns: GBP299,100.
- National average property value to income ratio: 4.3 times combined annual earnings.
Homeownership becomes more attainable
The identification of these affordable towns offers a tangible pathway to homeownership for many first-time buyers or those seeking to relocate. High mortgage rates have recently made buying a home more challenging for many.
These lower property values in specific regions help to offset some of those increased monthly costs. This data suggests that expanding a property search beyond traditionally expensive hotspots could unlock significant opportunities for buyers.
It encourages individuals to consider areas where their budgets will stretch further. Such a shift in buyer focus could alleviate some pressure on highly competitive housing markets elsewhere in the country.
Regional disparities in housing costs
This report shows a persistent trend of stark regional differences in housing affordability across the UK. While cities like London and areas in the South East continue to see high prices and income ratios, regions in northern England and Scotland consistently offer better value.
This pattern is not new; similar trends have been observed in other property market reports over the last decade. For instance, data from 2018 showed average house prices in parts of the North East were less than half the national average. This ongoing divergence reflects differing economic growth and employment opportunities across the country.
Questions about long-term prospects
While these towns offer clear financial benefits for buyers, several questions remain regarding their long-term viability as places to live and work.
- What are the local job markets like in these affordable towns, and do they offer diverse employment opportunities for new residents?
- How do public services, infrastructure, and amenities compare to more expensive regions, and can they support an influx of new residents?
- Will increased demand from affordability-driven buyers lead to rapid price inflation in these specific towns, eroding their current value proposition?
Affordable towns need more than low prices
While Zoopla’s report offers a welcome spotlight on genuine housing affordability, simply identifying cheap towns is not a complete solution to the housing crisis. The real challenge lies in creating sustainable communities in these areas.
Low prices alone will not attract and retain residents if job prospects are limited or public services are lacking. Policymakers should view this data as an invitation to invest in these regions.
Focus must extend beyond property values to include infrastructure, education, and economic development. Only then can these towns become truly attractive options, rather than just temporary havens for budget-conscious buyers.
Expanding your property search
Anyone considering buying a home, especially first-time buyers, could significantly benefit from widening their geographical search. This report suggests that looking beyond familiar areas or traditional commuter belts might reveal more accessible options.
It encourages a pragmatic approach to property hunting. Buyers might find that towns like Shildon or Fraserburgh offer a chance to get onto the property ladder much sooner. This could mean a lower deposit and more manageable monthly mortgage payments, securing a home that was previously out of reach.
