What can you afford? - Investment - First time buyer

Which is the most affordable county for homebuyers in the UK?

3 min read

House prices vary across England, with the northern counties considered to have to lower house prices compared to the south. However, which county is actually the most affordable in the UK? We’ve broken it down for you in the article below.

  • Amy Colton, Conveyancing Manager and qualified solicitor
    Amy Colton

    Conveyancing Manager

    Updated on

    Published

mum entering a new house with her 2 daughters all carrying boxes, ready to  move into their new home. The house is bright and with floor to ceiling windows and the children look excited

The latest market insight reveals which English counties are currently the most affordable for homebuyers both nationally and within each region of country, based on the house price to income ratio.

We’ve looked at the average house price* in each English county and divided it by the average annual income* in that county to find the house price to income ratio in the current market, revealing which counties have the most and least affordable housing markets relative to local average income. An affordability ratio is displayed as a number, eg 4.1, and the lower that number, the more affordable the county is.

National picture

The index reveals that England’s national affordability ratio currently stands at 8.5, based on an average annual salary of £35,955 and an average house price of £305,879.

The most affordable county in the whole country is Durham. Durham’s average house price is currently £131,742, while the average annual salary is £30,407, thus producing an affordability ratio of 4.3.

At the other end of the scale, Oxfordshire is the nation’s least affordable homebuying county. An average local house price of £427,983 meets an average salary of £37,696 to create an affordability score of 11.4.

Devon also ranks ahead of the capital, where the average house price comes in at 11.1 times the average income, with London the third least affordable area with a house price to income ratio of 11.

The most affordable county in each region of England

North East

As mentioned, Durham is the most affordable county in England and, therefore, the North East with an affordability score of 4.3, but in a close second is Tyne & Wear with a score of 5.8, followed by Northumberland (6.5).

North West

With an average house price of £188,563 and an average annual salary of £32,215, an affordability score of 5.9 makes Lancashire the most affordable homebuying county in the North West.

Cumbria (6.0) and Merseyside (6.2) come in a close second and third.

Yorkshire & Humber

South Yorkshire is the most affordable county in Yorkshire & Humber with an affordability score of 6.2 based on an average local house price of £192,370 and an average salary of £31,225.

West Yorkshire (6.7) and East Riding of Yorkshire (7.1) place second and third respectively.

East Midlands

Both Derbyshire and Lincolnshire have an affordability score of 7.2 making them the joint-most affordable counties in the East Midlands. Lincolnshire’s average house price is £225,392 while Derbyshire’s stands at £233,861. The two counties have average salaries of £31,316 and £32,321 respectively.

Nottinghamshire has a score of 7.6 followed by Northamptonshire at 8.4.

West Midlands

In the West Midlands region, West Midlands County is the most affordable area. The local average house price of £236,914 and average salary of £33,163 produce an affordability score of 7.1.

Staffordshire scores 7.5 and Warwickshire scores 8.5.

East of England

In the East of England, Suffolk and Essex are the most affordable homebuying counties, both with a score of 8.9. Norfolk (9.0) and Cambridgeshire (9.2) place second and third.

South East

In the South East, the most affordable county is Kent. The average cost of a home is £342,268 and the average income is £35,992 producing an affordability score of 9.5.

Hampshire scores 9.8 while Buckinghamshire scores 10.0.

South West

Wiltshire is the most affordable homebuying county in the South West. An average house price of £329,279 and average salary of £34,717 gives an affordability score of 9.5.

Somerset scores 9.6 and Gloucestershire scores 9.8. 

Greater London

Greater London is the least affordable homebuying region in England. An average house price of £520,747 and average salary of £47,301 create a score of 11.0.

Why is it important to look at affordability?

Property market affordability is commonly based on the value of the average home, however it’s important to look at it relative to the income earned by homebuyers looking to purchase in these areas.

So, whilst London may be home to the highest average house price of all counties in England, it’s Oxford that is home to the worst level of affordability when considered alongside the average income.

Similarly, whilst the North East may boast the highest degree of affordability where house prices are concerned, that’s not to say that other regions don’t have a varying degree of affordability on offer from one county to the next.

When hunting for your next home, understanding the local market is vital and you may find that you can significantly boost your purchasing power by looking to a neighbouring county.

If you are looking for more information about what you can afford, discover our collection of article in our "What you can afford" article hub.

Share this post

Contact

We're here to help

Get in touch with one of the team

Conveyancing team

If you would like to speak to your conveyancer, please log in to your eWay account where you can find their contact details.

Log in to eWay
  • Monday - Friday

    9am - 5pm

Move Specialist team

If you would like to discuss a quotation you have received please call our Move Specialists on

0333 234 4425
  • Monday - Friday

    9am - 5pm

General Enquiries

If you would like to email us, please send it to the following email address:

quotations@myhomemoveconveyancing.co.uk
  • Monday - Friday

    9am - 5pm