Lloyds calculated that the average UK home costs around 7.3 times average earnings, the lowest price-to-earnings ratio since 2015 and down from 7.6 a year ago.
But in Inverclyde, the average house price of £146,030 was just 3.5 times the average annual wage.
Aberdeen took second spot in the UK’s most affordable areas, with a similar housing cost-to-earnings ratio.
Other affordable locations in Scotland include Dundee, where the average house price was £152,072, equivalent to 3.6 times average annual earnings.
Dumfries and Galloway followed closely behind, with an average property price of £153,360, or 3.7 times local earnings.
Angus and East Ayrshire also featured on the list. Average house prices stood at £160,928 in Angus and £162,459 in East Ayrshire, both representing 3.9 times average earnings.
Overall, six areas in Scotland were featured, suggesting buyers face a lower house price-to-earnings ratio than many other areas across the UK, making home ownership comparatively more attainable.
Lloyds said housing affordability has now reached its most favourable level in more than a decade when comparing the price of an average home with wages.
The bank said wage growth has outpaced house price increases over the past year, narrowing the affordability gap.
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Lloyds’ calculations compared figures for April to June 2026 with the same period in previous years, using data from its house price index and Office for National Statistics (ONS) figures.
Although the comparisons looked at the second quarter of each year, Lloyds assessed all quarters and found that no other quarter had recorded a lower ratio than 7.3 over the past 11 years.
For first-time buyers, the average home costs just under six times earnings, with a ratio of 5.9, Lloyds said.
Despite the improvements in affordability, London and the South East remained the two least affordable regions.
Some locations with lower ratios recorded smaller decreases. In Scotland, the ratio remained broadly unchanged at 5.3.
The ratio fell from 5.1 to 5.0 in the North East of England, while in the North West of England it fell from 6.5 to 6.3, and in Yorkshire and the Humber it edged down from 6.0 to 5.8.
Lloyds said that despite improvements to the price-to-earnings ratio, rising mortgage rates have pushed up borrowing costs.
Andrew Asaam, mortgages director at Lloyds, said: “There are some encouraging signs for people looking to buy a home.
“Wages have continued to rise while house prices have remained relatively stable, helping to narrow the gap between earnings and house prices.
“However, affordability remains stretched for many households.”
He added: “Mortgage rates are higher than they were a year ago and saving for a deposit continues to be one of the biggest barriers facing first-time buyers.
“Buyers may have more options than they realise, including mortgages designed for those with smaller deposits.
“While these won’t be right for everyone, they can help some buyers take their first step onto the housing ladder sooner.”
Mr Asaam said the figures showed that first-time buyers could maximise their investment by choosing their location wisely.
He said: “For first-time buyers in particular, a small shift in location could make a big difference, not just in getting on the ladder, but in what kind of property is within reach.
“Many parts of Scotland and northern England continue to offer some of the best value relative to local earnings.
“For buyers with flexibility over where they live, that can make a meaningful difference to what they can afford.”
