Britain’s ‘most and least affordable’ places to buy a home revealed

Housing affordability has reached its most favourable level in more than a decade when comparing the price of an average home with wages, according to analysis by a major bank. uncertain

The bank said the rate of wage growth has outpaced house price increases over the past year, narrowing the affordability gap. asserted

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. asserted

Although the comparisons looked at the second quarter of each year, Lloyds assessed all quarters and found that no other quarter had been lower than 7.3 for 11 years. asserted

For first-time buyers, the average home costs just under six times earnings, with a ratio of 5.9, Lloyds said. asserted

The biggest improvements over the past year tended to be in regions where house prices were already relatively high compared with earnings. asserted

In London, the ratio fell from 10.9 to 10.3, while in Eastern England it fell from 8.7 to 8.2 and in the South West it decreased from 8.2 to 7.7. Read More asserted

Despite the improvements in affordability, London and the South East remained the two least affordable regions. asserted

Some locations with lower ratios recorded smaller decreases. asserted

In Scotland, the ratio remained broadly unchanged at 5.3. asserted

The research pinpointed locations where homes are particularly affordable compared with average earnings. asserted

Areas in Scotland topped the list, with homes in Inverclyde and Aberdeen costing 3.5 times wages on average. asserted

Properties in Kingston upon Hull, Blackpool and Dundee cost 3.6 times earnings. asserted

Kensington and Chelsea in London followed at 17.3, while St Albans in Hertfordshire was the third least affordable with an average of 14.1. asserted

Lloyds did not include Northern Ireland in its more localised breakdowns due to small sample sizes. asserted

Lloyds said that despite improvements to the price-to-earnings ratio, mortgage rate rises have pushed up mortgage costs. asserted

Andrew Asaam, mortgages director at Lloyds, said: “There are some encouraging signs for people looking to buy a home. asserted

“Wages have continued to rise while house prices have remained relatively stable, helping to narrow the gap between earnings and house prices. asserted

“However, affordability remains stretched for many households. asserted

“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. asserted

“Buyers may have more options than they realise, including mortgages designed for those with smaller deposits. “ uncertain

While these won’t be right for everyone, they can help some buyers take their first step onto the housing ladder sooner.” asserted

The Government recently unveiled a new scheme to help first-time buyers in England on to the property ladder. asserted

The Your First Home initiative will give first-time buyers the chance to buy a new-build property with a 2.5% deposit, with the Government lending an extra 20% towards the cost. asserted

Details will be outlined in the Budget and developers will also be expected to make a contribution when signing up to the scheme, to help cover costs. asserted

Mr Asaam 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. uncertain

“Many parts of Scotland and northern England continue to offer some of the best value relative to local earnings. asserted

“For buyers with flexibility over where they live, that can make a meaningful difference to what they can afford.” asserted

Here are the 10 most affordable locations in Britain for home buyers, according to Lloyds, based on average house price-to-earnings ratios. uncertain

The figures show the average house price followed by the average price-to-earnings ratio: =1. asserted

East Ayrshire, Scotland, £162,459, 3.9 Here are the 10 least affordable locations in Britain for home buyers, according to Lloyds, based on average house price-to-earnings ratios. uncertain

The figures show the average house price followed by the average price-to-earnings ratio: 1. asserted

Guildford, South East, £514,773, 12.3 Here are the most and least affordable local areas in regions and nations of Britain, according to Lloyds, with the local area followed by the average home price and the average home price-to-income ratio: uncertain

– East Midlands Most affordable: Mansfield, £183,032, 4.9 Least affordable: Malvern Hills, £328,261, 8.8 – Eastern England Most affordable: Boston and South Holland, £181,885, 4.5 Least affordable: St Albans, £568,940, 14.1 – London Most affordable: Barking and Dagenham, £322,675, 6.2 Least affordable: Kensington and Chelsea, £895,893, 17.3 – North East Most affordable: Middlesbrough, £139,678, 3.9 Least affordable: Northumberland, £230,176, 6.4 – North West Most affordable: Blackpool, £141,550, 3.6 Least affordable: Trafford, £358,854, 9.2 – Scotland Most affordable: Inverclyde, £146,030, 3.5 Least affordable: East Renfrewshire, £288,665, 6.9 – South East Most affordable: Portsmouth, £216,713, 5.2 Least affordable: Elmbridge, £726,523, 17.4 – South West Most affordable: Plymouth, £201,008, 5.2 Least affordable: Cotswolds, £403,153, 10.3 – Wales Most affordable: Neath Port Talbot, £153,212, 4.1 Least affordable: Monmouthshire, £300,079, 8.0 – West Midlands Most affordable: Stoke-on-Trent, £172,917, 4.5 Least affordable: Stratford-on-Avon, £347,085, 8.9 – Yorkshire and the Humber Most affordable: Kingston upon Hull, £134,642, 3.6 Least affordable: York, £302,747, 8.1 Here are average house price-to-earnings ratios across the UK, according to Lloyds: Eastern England, 8.2 East Midlands, 6.6 London, 10.3 North East, 5.0 North West, 6.3 Northern Ireland, 6.0 Scotland, 5.3 South East, 9.1 South West, 7.7 Wales, 6.2 West Midlands, 6.8 Yorkshire and the Humber, 5.8 uncertain