According to property website Zoopla, Tower Hamlets is the capital’s most budget-friendly borough, with average home values at £455,200—equivalent to 4.91 times the combined income of two full-time earners.
The analysis forms part of a wider study identifying 36 towns across Britain where homes typically cost less than twice the annual earnings of two full-time workers.
Zoopla examined 929 towns across the country, finding that a typical home is valued at £299,100, or 4.3 times typical household earnings.
National affordability picture
Richard Donnell, executive director at Zoopla, said: “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.
“Affordability varies widely across the country, with many towns in northern England and Scotland offering much better value relative to local household earnings.
“However, lower house prices don’t always mean it’s easier to buy, as access to employment, deposits and mortgage costs remain important considerations.
“Buyers have more homes to choose from than a year ago, and there is greater scope to negotiate on price, particularly in southern England.
“Anyone considering a move should take a fresh look at what they can afford and what’s available locally.
“Expanding a search to neighbouring towns could make a meaningful difference to their buying options.”
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The research found that Scotland accounted for 23 of the 36 most affordable towns in Britain, with the North East and North West of England making up much of the remainder.
Most affordable locations
Shildon in County Durham was named Britain’s most affordable town, with average property prices at just £73,600—just 1.15 times the combined salary of two full-time earners.
Other top-value locations include Ferryhill, County Durham (£91,500, 1.43 times earnings), and Peterlee, also in County Durham (£96,500, 1.51 times earnings).
The research only included postal towns with 5,000 or more homes.
Regional highlights
The most affordable towns in each region were:
- North East: Shildon (£73,600, 1.15 times earnings)
- Scotland: Fraserburgh (£116,000, 1.59)
- North West: Workington (£114,900, 1.65)
- Wales: Ferndale (£116,200, 1.82)
- Yorkshire and the Humber: Kingston upon Hull (£131,400, 2.16)
- West Midlands: Stoke-on-Trent (£160,700, 2.64)
- East Midlands: Ilkeston (£192,100, 2.70)
- East of England: Great Yarmouth (£166,300, 2.72)
- South East: Dover (£206,300, 2.97)
- South West: Bideford (£224,700, 3.35)
- London: Tower Hamlets (£455,200, 4.91)
Britain’s most affordable towns
Zoopla’s list of the 36 towns where homes typically cost less than twice the annual earnings of two full-time workers includes:
- Shildon, North East, County Durham, £73,600, 1.15
- Ferryhill, North East, County Durham, £91,500, 1.43
- Peterlee, North East, County Durham, £96,500, 1.51
- Fraserburgh, Scotland, Aberdeenshire, £116,000, 1.59
- Irvine, Scotland, North Ayrshire, £114,800, 1.62
- Peterhead, Scotland, Aberdeenshire, £120,600, 1.65
- Ardrossan, Scotland, North Ayrshire, £116,900, 1.65
- Workington, North West, Cumberland, £114,900, 1.65
Other notable towns include Methil and Saltcoats in Scotland (both at 1.69 times earnings), Nelson in Pendle (£108,200, 1.72), and Wishaw and Kilwinning in Scotland (both 1.75).
Further down the list, towns such as Birkenhead in the North West and Bishop Auckland in the North East remain well below the national average property-to-income ratio.
While the findings highlight areas of relative affordability, Zoopla cautions that lower property prices must be weighed against factors such as employment opportunities, deposit requirements, and mortgage costs.
The company said buyers should consider broadening their property search to neighbouring areas, as this could significantly expand their options.
