Families can currently get on the housing ladder for as little as £325 a month, with towns in the North East amongst the UK’s most affordable locations, according to new analysis from Zoopla.
Zoopla’s affordability rankings are based on the 300 popular towns for families looking to buy three bedroom homes based on the number of views per property - these towns were then ranked by affordability.
The ‘affordable’ status is based on them having a low ‘value to earnings’ ratio - the equivalent number of years’ salary it would take two adults to buy a home.
Which towns top the affordability rankings?
The top three areas are all in the North East of England with Shildon, a quiet town with a rich industrial heritage, located in County Durham, near Bishop Auckland coming top of the list with an average price of just £82,500, and a value to earnings ratio of 1.36x. Homes in Shildon are three times cheaper than the most affordable towns in the South East.
Towns across the North East, Scotland and Wales make up the top 10 most affordable towns.
Ferndale is a town in the Rhondda Valley and the most affordable town in Wales with average three bed home values of £113,000 and a price to earnings ratio of 1.85x. Cumnock is an historic market town in East Ayrshire, south of Glasgow, and tops the list in Scotland with an average value of £113,600 and a value to earnings ratio of 1.68x.
Clear north-south divide in most affordable towns for families
There are affordable towns within every region but higher house prices in the south means less affordability and higher monthly mortgage repayments. Dover is the most affordable town in the South East but the value to earnings ratio is over 4x with monthly mortgage repayments of £1,100.
Lowestoft in the East of England and Cinderford in the South West top the affordability ranking for families across the south of England with value to earnings ratio of 3.6x to 3.8x.
Richard Donnell, executive director at Zoopla, commented: “The housing market is entering one of its busiest periods, with the most homes for sale in many years and at a time when buyers are becoming increasingly focused on value for money.
"What stands out is the scale of the affordability gap across the UK. In parts of the North East, families can buy a home for much less than the cost of buying in the most affordable towns in southern England.
"While there are affordable options in every region, buyers often face a trade-off between lower house prices and their proximity to major employment centres. Many of the most affordable towns in southern England are coastal meaning better affordability may come at the cost of more expensive travel which may not work for everyone.
"The tools are out there to help buyers make better informed decisions and understand the trade offs to make a successful move in 2026.”
