A newly released map has highlighted some of the cheapest postcodes in Britain, where properties are priced as low as £80,000. These areas are offering some of the most affordable housing options across the country, providing potential homeowners with opportunities to purchase a home without the burden of extortionate prices that have become common in more urbanised regions.
However, despite the allure of these lower-priced areas, homebuyers in dual-income households are facing increasing financial pressures. According to Zoopla, the challenge is growing, with many now needing to pay nearly four times their combined income just to afford an average home. This stark reality reflects the rising costs of housing across the UK, even in the most affordable postcodes. As house prices continue to climb, even more budget-conscious buyers are finding themselves struggling to meet the financial demands of purchasing a property.
CHEAP & CHEERFUL UK’s best value towns
The property website has reported that households with both partners working full-time now typically pay 3.8 times their annual household income to buy a home. This figure highlights the growing financial burden on dual-income households, as home prices continue to rise across the country.
For single buyers, the situation is even more challenging. In Britain, a single individual typically faces paying 7.6 times their annual income to purchase a property. This stark contrast between dual-income and single-income buyers shows the significant strain placed on those without the financial support of a second income.
Zoopla conducted an analysis of house price-to-earnings ratios to identify the most affordable regions across the UK. The data, which was based on a two-earner household with an average local salary, aimed to pinpoint areas where homeownership remains more accessible.
The results revealed some surprising findings. In Cumnock, located in East Ayrshire, Scotland, and Shildon in County Durham, North East England, the average house price is just 1.1 times the typical household earnings. This makes these locations some of the most affordable places to buy a home in the UK, providing a welcome opportunity for potential buyers in search of more budget-friendly options.
The most affordable location in London was still found to be above the national average affordability ratio for a two-earner household, according to Zoopla’s research.
Croydon was identified as the most affordable area in London, with homes costing approximately 4.7 times the local income. While this is relatively lower compared to other parts of the capital, it still highlights the significant gap in affordability compared to the rest of the UK.
Izabella Lubowiecka, a senior property researcher at Zoopla, commented: “London remains the least affordable area for home-buyers.” She noted that potential buyers in London may need to look beyond the capital for more affordable options.
Lubowiecka suggested that those looking to get more for their money might want to consider purchasing a home in one of the South East or East of England’s commuter belt towns. These areas offer a more budget-friendly alternative to London, with many towns being more affordable while still providing convenient access to the capital.
“The same is true in markets around many regional cities, where buyers are seeking better value for money,” said Toby Leek, president of the National Association of Estate Agents (NAEA) Propertymark. He highlighted that affordability remains a significant issue for many people, and despite slight drops in inflation, homebuyers are still exercising caution.
Leek further pointed out that, with the option of flexible working arrangements, many prospective homeowners are no longer tied to static office locations. This shift has allowed them to explore new opportunities and consider stepping onto the property ladder in different locations, or even finding a more affordable dream home.
The NAEA’s comments come alongside research commissioned by Santander UK, which found that nearly three-quarters (73%) of first-time buyers would consider relocating to new towns to find a more affordable property. This contrasts with 57% of “second steppers” – those planning to move from their first home – and 41% of those looking to downsize in later life.
For some, however, relocating is not an option. Many expressed concerns about the quality of housing in new areas. Yet, others pointed out that the presence of healthcare facilities and green spaces would make them more likely to consider moving.
A survey of over 4,000 people in September revealed that 47% of prospective first-time buyers identified affordability as a significant obstacle. In response, Graham Sellar, head of business development for mortgages at Santander, noted: “New towns have incredible potential, but to maximise their impact, they must be designed with the future residents in mind.” Sellar stressed the importance of building vibrant communities, complete with green spaces and easy access to healthcare, to attract more homebuyers.
The findings of this report were released alongside a study revealing the UK’s most expensive and cheapest areas to buy or rent a home. Interestingly, a forgotten seaside town with a steady flow of tourists was found to have some of the UK’s cheapest properties, although many locals had never even visited the shingle beach.
How to buy your first home
Getting onto the property ladder can often feel like a daunting task, but there are various schemes designed to assist first-time buyers in securing their own home.
One of the key options is the Lifetime ISA, a government initiative that allows anyone aged between 18 and 39 to save tax-free while benefiting from a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year into this account, with the government adding an additional 25% on top of your savings, making it a valuable option for those looking to get a foot on the property ladder.
Another option is shared ownership, where you co-own a property with a housing association. In this scheme, you can buy a portion of the property, typically between 25% and 75%, and pay rent on the remaining share. While this option can make homeownership more affordable, it is important to note that you will be restricted to specific properties that are eligible for shared ownership.
Lastly, the mortgage guarantee scheme is available to both first-time buyers and those who have previously owned a property, provided they have a minimum 5% deposit. This scheme is particularly useful for those who may struggle to save a larger deposit, as it offers additional support from the government to secure a mortgage.
Each of these schemes can offer vital assistance to individuals looking to purchase their first home, making the process a little less overwhelming.
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