Zoopla Finds 36 British Towns Where Homes Cost Less Than Twice Household Earnings

Homes in 36 British towns are valued at less than twice the combined annual earnings of two local full-time workers, according to new Zoopla research. The findings reveal how sharply buying power changes across the country, even as mortgage costs remain under pressure.

Shildon in County Durham tops the ranking, with a typical property value of £73,600 and a price-to-household-income ratio of 1.15. Nearby Ferryhill and Peterlee take second and third place, with typical values of £91,500 and £96,500 respectively.

The study, reported by Mortgage Soup and The Times on 6 November, examined 929 towns. Across Great Britain, the comparison puts a typical home at £299,100, equivalent to approximately 4.3 times household earnings.

For buyers struggling to make a purchase work, the difference is substantial. Moving the search to a less expensive location can reduce both the savings needed upfront and the mortgage payment afterwards. Whether that opportunity is practical depends heavily on where the household can work and the home it needs.

Scotland and northern England dominate the list

Scotland accounts for 23 of the 36 towns, followed by eight in the North East, four in the North West and one in Wales. The distribution shows how concentrated the lowest price-to-income ratios are.

Fraserburgh is Scotland’s leading location, with a typical value of £116,000 at 1.59 times household earnings. Workington leads the North West at £114,900 and 1.65 times earnings, while Ferndale is Wales’s most affordable town on this measure.

These figures describe typical values across each location. They are not asking prices for particular properties, and a buyer seeking a larger house, a specific school catchment or a home requiring little work may face a different budget.

Two earners make a considerable difference

The household assumption is central to the headline. A couple with two full-time salaries has a different starting point from someone buying alone, or a family where one partner works fewer hours to provide childcare.

For illustration, a £73,600 property is 1.15 times a combined income of £64,000. Against one £32,000 salary, the same price is 2.3 times earnings. The home has not become more expensive, but the income available to support it has halved.

Nor does a ratio below two mean the purchase can be funded by saving two years’ wages. Tax and living costs come out of those earnings. Most buyers still need a deposit and a mortgage, with repayments spread over a much longer period.

The ratio also uses the property’s full value. A mortgage application concerns the amount borrowed after the deposit, assessed against the applicant’s actual finances. Confusing those two measures can make the research sound more generous than a real lending decision.

A lower price can cut years from the deposit challenge

The cash required to buy provides perhaps the clearest illustration of the regional difference. A 10% deposit on a £73,600 purchase is £7,360. On the £299,100 national comparison, it is £29,910, a gap of £22,550 before other costs.

For a household saving while paying rent, that can transform the timetable for buying. It may also leave more money available for moving, furnishing the property or keeping a reserve after completion.

However, the deposit is only part of the initial bill. Legal work, surveys, moving expenses and repairs also need funding. A lower purchase price does not reduce every one of those costs in proportion, so they can absorb a larger share of a modest buying budget.

Smaller mortgages still offer meaningful monthly savings

The research arrives a day after the Bank of England raised Bank Rate to 4%. That puts renewed attention on borrowing costs, but it does not remove the benefit of needing a smaller mortgage.

Consider two illustrative purchases at £100,000 and £200,000, each with a 10% deposit. At the same assumed mortgage rate and term, the lower-priced property halves both the deposit and monthly repayment.

The £526 monthly difference could make a purchase more manageable. The household would still need room for utilities, maintenance and other commitments. As MoneyHelper explains, lenders consider income and outgoings together when assessing what someone can afford.

Relocation works best when the income moves too

For professionals able to keep their earnings while relocating, cheaper property can create considerable financial freedom. A buyer might need less debt, retain more savings or afford an additional bedroom without increasing the mortgage.

The calculation changes if moving involves a lower salary, a period between jobs or one partner giving up work. A smaller mortgage can be offset by reduced take-home pay. The relevant comparison is the household’s expected position after moving.

Commuting deserves the same attention. A lower mortgage payment may look less compelling once additional rail fares, fuel, parking or overnight accommodation are included. Remote working arrangements also need to be dependable enough to support the move.

For some buyers, extending a search to a neighbouring town could deliver part of the price saving while preserving existing employment and family support. The cheapest location nationally will not necessarily provide the best practical option.

The individual home still needs to work

A town-level average says little about the condition or mortgageability of a particular property. A home requiring substantial repairs, or with unusual construction or ownership arrangements, may present challenges that the headline price does not reveal.

The government’s homebuying guide distinguishes the lender’s valuation from a survey assessing the building’s condition. That matters when an apparently affordable purchase could require significant spending soon after completion.

Zoopla’s findings provide a useful reason to reconsider the boundaries of a property search. They show where local earnings buy more housing. Turning that advantage into a successful move means matching an actual home with a sustainable income, sufficient savings and a mortgage that fits the buyer’s plans.