2024 Housing Hotspots: Discover the UK's Most and Least Affordable Areas to Buy a Home
Introduction
Hopkins Homes is the largest independent housing developer in the East of England, so we know a thing or two about the housing market. As a new homes developer we never sit still and we’ve been building quality homes that suit every buying situation for 40 years. Whether you’re a first-time buyer or a seasoned homeowner scouting for a new home, we’ve analysed the data to unveil the most and least affordable areas in the UK. We’ve investigated the intricate web of house prices, salary levels, and other crucial factors to provide the ultimate guide to the current housing market.
Key Findings:
- Scotland is prominently featured in the list of most affordable areas, while London dominates the least affordable category.
- Angus, Scotland, is the most affordable area in the UK, with an average house price of £164,076 and a house price-to-earnings ratio of 2.31.
- Kensington and Chelsea, London, is the least affordable area in Britain, with an average house price of £1,197,249 and a house price-to-earnings ratio of 16.61.
- The City of Westminster, London, the second least affordable area in the UK, surprisingly has the lowest council tax of £1,218.
- City of London couples earning the highest, at £116,480, need six times their annual income for a house, while Oadby and Wigston couples, earning the lowest, at £48,901, need five times their annual income.
- Blaenau Gwent and Merthyr Tydfil in Wales have seen the highest percentage increases in house prices (11.03% and 11.34%, respectively) since 2020.
- Since 2020, Wandsworth in London has seen the slowest rise in house prices at just 0.51%, while prices in Southwark, London, have fallen by 0.74%.
The Most and Least Affordable Areas to Buy a Home in the UK
20 Most Affordable Areas to Buy a Home in the UK
Here is a comprehensive overview of the top 20 most affordable places to buy a home in the UK based on house prices, salary levels, and other relevant factors.
- Angus, Scotland
Angus in Scotland ranks as the most affordable place in the UK to buy a house, with an average house price of £164,076 as of January 2024. This area has seen a modest price increase of 3.94% since 2020, reflecting its stable housing market. Couples in Angus enjoy annual median earnings of £70,959, resulting in a favourable house price-to-earnings ratio of 2.31. Additionally, with an average council tax of £1,756, Angus achieves a final score of 85, making it the top choice for affordable living in the UK. - West Dunbartonshire, Scotland
West Dunbartonshire, also in Scotland, comes in second with an average house price of £136,668. The area has experienced a price rise of 5.34% since 2020. Couples earn a median annual income of £67,881, resulting in a house price-to-earnings ratio of 2.01. The average council tax is £1,865, contributing to its final score of 84.1. - Aberdeenshire, Scotland
Aberdeenshire ranks third on the list, with an average house price of £200,276. This area has seen a smaller price increase of 3.67% since 2020. The annual median earnings for couples are £70,179, yielding a house price-to-earnings ratio of 2.85. With an average council tax of £1,858, Aberdeenshire achieves a final score of 83.2. - North Ayrshire, Scotland
North Ayrshire is the fourth most affordable area, with an average house price of £130,943. The area has witnessed a notable price increase of 6.54% since 2020. Couples earn a median annual income of £74,204, resulting in a favourable house price-to-earnings ratio of 1.76. The average council tax here is £1,936, leading to a final score of 82.9. - North Lanarkshire, Scotland
North Lanarkshire, with an average house price of £138,557, ranks fifth in affordability. The area has experienced a price rise of 7.03% since 2020. Couples in North Lanarkshire have a median annual income of £73,164, resulting in a house price-to-earnings ratio of 1.89. The average council tax is £1,761, contributing to a final score of 82.5. - Inverclyde, Scotland
Inverclyde, placed sixth, has an average house price of £125,836 and has seen a 7.14% price increase since 2020. Couples here earn a median annual income of £66,383, which results in a house price-to-earnings ratio of 1.9. The average council tax in Inverclyde is £1,906, leading to a final score of 82.3. - East Ayrshire, Scotland
East Ayrshire ranks seventh, with an average house price of £128,549. The area has experienced a 7.48% increase in house prices since 2020. The median annual earnings for couples are £68,245, yielding a house price-to-earnings ratio of 1.88. With an average council tax of £1,983, East Ayrshire achieves a final score of 81.5. - South Lanarkshire, Scotland
In eighth place, South Lanarkshire has an average house price of £166,162 and a 7.13% price increase since 2020. Couples earn a median annual income of £75,098, resulting in a house price-to-earnings ratio of 2.21. The average council tax here is £1,734, leading to a final score of 81.3. - Renfrewshire, Scotland
Ninth on the list is Renfrewshire, with an average house price of £156,917. The area has experienced a 7.06% price rise since 2020. Couples here have a median annual income of £67,153, resulting in a house price-to-earnings ratio of 2.34. The average council tax is £1,915, contributing to a final score 80.9. - Falkirk, Scotland
Falkirk ranks tenth, with an average house price of £168,536 and a 7.14% price increase since 2020. Couples in Falkirk earn a median annual income of £75,785, yielding a house price-to-earnings ratio of 2.22. The average council tax is £1,818, leading to a final score of 80.9. - South Ayrshire, Scotland
South Ayrshire ranks eleventh, with an average house price of £175,071. The area has seen a 6.73% increase in house prices since 2020. Couples earn a median annual income of £77,064, resulting in a house price-to-earnings ratio of 2.27. The average council tax here is £1,938, contributing to a final score of 80.7. - Sunderland, North East England
Sunderland comes in at number twelve, with an average house price of £135,666. The area has experienced a 6.17% increase in house prices since 2020. Couples here have a median annual income of £61,807, resulting in a house price-to-earnings ratio of 2.19. With an average council tax of £2,532, Sunderland achieves a final score of 80.6. - Clackmannanshire, Scotland
Clackmannanshire ranks thirteenth with an average house price of £167,646 and a 7.48% price increase since 2020. Couples earn a median annual income of £65,645, yielding a house price-to-earnings ratio of 2.55. The average council tax here is £1,881, leading to a final score of 79.9. - Fife, Scotland
Fife is fourteenth on the list, with an average house price of £169,568. The area has experienced a 7.66% increase in house prices since 2020. Couples here earn a median annual income of £64,771, resulting in a house price-to-earnings ratio of 2.62. With an average council tax of £1,847, Fife achieves a final score of 79.7. - Highland, Scotland
Highland ranks fifteenth, with an average house price of £207,903 and a 6.46% price increase since 2020. Couples in Highland earn a median annual income of £69,098, yielding a house price-to-earnings ratio of 3.01. The average council tax is £1,903, leading to a final score of 79.3. - Burnley, Lancashire, North West England
Burnley is sixteenth, with an average house price of £100,820. The area has experienced a 7.13% increase in house prices since 2020. Couples earn a median annual income of £54,038, resulting in a house price-to-earnings ratio of 1.87. With an average council tax of £2,992, Burnley achieves a final score of 79.2. - Shetland Islands, Scotland
The Shetland Islands rank seventeenth, with an average house price of £220,740 and a 7.31% price increase since 2020. Couples here have a median annual income of £89,357, yielding a house price-to-earnings ratio of 2.47. The average council tax is £1,681, leading to a final score of 79.2. - North East Lincolnshire, Yorkshire and The Humber
North East Lincolnshire ranks eighteenth, with an average house price of £152,694. The area has seen a 6.03% increase in house prices since 2020. Couples earn a median annual income of £67,621, resulting in a house price-to-earnings ratio of 2.26. The average council tax here is £2,894, contributing to a final score 78.8. - Scottish Borders, Scotland
The Scottish Borders rank nineteenth, with an average house price of £201,430 and a 7.49% price increase since 2020. Couples in this area earn a median annual income of £67,818, resulting in a house price-to-earnings ratio of 2.97. The average council tax is £1,878, leading to a final score of 78.6. - Blackpool, North West England
Blackpool rounds out the top twenty with an average house price of £132,545. The area has seen a 6.9% increase in house prices since 2020. Couples earn a median annual income of £62,202, resulting in a house price-to-earnings ratio of 2.13. With an average council tax of £2,897, Blackpool achieves a final score of 78.5.
20 Least Affordable Areas to Buy a Home in the UK
These areas represent the top 20 least affordable places to buy a home in the UK, characterised by high property values, substantial price growth, and varying local earnings and council tax rates.
- Kensington and Chelsea, London
Kensington and Chelsea rank as the least affordable area to buy a home in the UK, with an average house price of £1,197,249 as of January 2024. Despite a minimal price increase of 0.73% since 2020, the high property values contribute to an exceedingly high house price-to-earnings ratio of 16.18. The annual median earnings for couples in this area is £73,996, significantly lower than house prices. The average council tax stands at £1,923, leading to a final affordability score of 40. This borough's high property prices and relatively moderate incomes make it the most financially challenging place to purchase a home in the UK. - City of Westminster, London
The City of Westminster follows closely, with an average house price of £936,715. House prices have increased by 4.42% since 2020, and the annual median earnings for couples are £94,172. Despite higher incomes than Kensington and Chelsea, the house price-to-earners ratio remains steep at 9.95. The average council tax here is £1,218, contributing to a final score 53. This central London area remains unaffordable for many due to high property prices and substantial price growth. - Elmbridge, Surrey
Elmbridge in Surrey ranks third, with an average house price of £675,946 and a 4.07% increase since 2020. Couples earn a median annual income of £79,872, resulting in a house price-to-earnings ratio of 8.46. The average council tax in Elmbridge is relatively high at £2,973, leading to a final score of 57.3. - Camden, London
Camden is the fourth least affordable area, with an average house price of £797,248. The area has seen a modest 0.7% increase in house prices since 2020. Couples earn a median annual income of £88,400, resulting in a house price-to-earnings ratio of 9.02. With an average council tax of £2,534, Camden achieves a final score of 58.3. - Cotswold, Gloucestershire
Cotswold in Gloucestershire ranks fifth, with an average house price of £499,606 and a significant 7.52% increase since 2020. Couples earn a median annual income of £58,146, resulting in a house price-to-earnings ratio of 8.59. The average council tax is £2,752, leading to a final score of 59.6. - Hammersmith and Fulham, London
Hammersmith and Fulham in London is sixth, with an average house price of £724,641. The area has seen a 3.72% increase in house prices since 2020. Couples earn a median annual income of £86,206, resulting in a house price-to-earnings ratio of 8.41. The average council tax stands at £1,741, contributing to a final score 60.6. - Epsom and Ewell, Surrey
Epsom and Ewell in Surrey ranks seventh, with an average house price of £531,321, a 4.61% increase since 2020. Couples earn a median annual income of £65,603, resulting in a house price-to-earnings ratio of 8.1. The average council tax here is £2,940, contributing to a final score of 61.9. - South Hams, Devon
South Hams in Devon ranks eighth, with an average house price of £432,480 and an 8.02% increase since 2020. Couples earn a median annual income of £61,922, resulting in a house price-to-earnings ratio of 6.98. The average council tax is £3,015, leading to a final score of 61.9. - Mole Valley, Surrey
Mole Valley, also in Surrey, ranks ninth, with an average house price of £565,217 and a 5.04% increase since 2020. Couples earn a median annual income of £91,291, resulting in a house price-to-earnings ratio of 6.19. The average council tax is £2,926, leading to a final score of 62.2. - Tandridge, Surrey
Tandridge in Surrey ranks tenth, with an average house price of £516,880, which has increased by 4.69% since 2020. Couples earn a median annual income of £75,618, resulting in a house price-to-earnings ratio 6.84. The average council tax is £3,003, contributing to a final score of 63.3. - Sevenoaks, Kent
Sevenoaks in Kent is eleventh, with an average house price of £492,056 and a 4.56% increase since 2020. Couples earn a median annual income of £62,785, resulting in a house price-to-earnings ratio of 7.84. The average council tax stands at £2,936, leading to a final score of 63.5. - Waverley, Surrey
Waverley in Surrey ranks twelfth, with an average house price of £511,163 and a 4.37% increase since 2020. Couples earn a median annual income of £73,445, resulting in a house price-to-earnings ratio of 6.96. The average council tax stands at £3,017, leading to a final score of 63.7. - Barnet, London
Barnet in London ranks thirteenth, with an average house price of £579,029, which has increased by 3.76% since 2020. Couples earn a median annual income of £77,574, resulting in a house price-to-earnings ratio of 7.46. The average council tax is £2,448, contributing to a score of 63.7. - St Albans, Hertfordshire
St Albans in Hertfordshire ranks fourteenth, with an average house price of £553,806, which has increased by 3.14% since 2020. Couples earn a median annual income of £74,568, resulting in a house price-to-earnings ratio of 7.43. The average council tax is £2,792, leading to a final score of 64.1. - Islington, London
Islington ranks fifteenth, with an average house price of £659,560, which has increased by 1.64% since 2020. Couples earn a median annual income of £93,330, resulting in a house price-to-earnings ratio of 7.07. The average council tax is £2,420, contributing to a final score of 64.1. - Winchester, Hampshire
Winchester in Hampshire ranks sixteenth, with an average house price of £504,924, which has increased by 4.55% since 2020. Couples earn a median annual income of £70,990, resulting in a house price-to-earnings ratio of 7.11. The average council tax is £2,729, leading to a final score of 64.6. - Three Rivers, Hertfordshire
Three Rivers in Hertfordshire ranks seventeenth, with an average house price of £557,757, which has increased by 3.61% since 2020. Couples earn a median annual income of £89,700, resulting in a house price-to-earnings ratio of 6.22. The average council tax is £2,798, contributing to a final score of 64.6. - Harrow, London
Harrow ranks eighteenth, with an average house price of £502,774 and a 3.86% increase since 2020. Couples earn a median annual income of £68,640, resulting in a house price-to-earnings ratio of 7.32. The average council tax is £2,884, contributing to a final score of 64.7. - Merton, London
Merton ranks nineteenth, with an average house price of £566,968, which has increased by 2.93% since 2020. Couples earn a median annual income of £77,126, resulting in a house price-to-earnings ratio of 7.35. The average council tax is £2,519, leading to a final score of 65. - Rother, East Sussex
Rother in East Sussex rounds out the top twenty, with an average house price of £366,846 and a 7.59% increase since 2020. Couples earn a median annual income of £60,070, resulting in a house price-to-earnings ratio 6.11. The average council tax is £3,102, contributing to a final score of 65.2.
Regional Analysis
This regional analysis examines housing affordability across various regions in the UK, identifying the most and least affordable areas within each region.
- Scotland
Scotland tops the affordability charts! It is home to 16 of the 20 most affordable places to buy a home in Britain.
Angus in Scotland takes the number one spot for the most affordable town in Britain to buy a house, while East Lothian is the least affordable place in Scotland. - North East
North East England stands out for its housing affordability. It holds half of England’s top 10 most affordable places to buy a home.
Sunderland is the cheapest place to buy a house in the Northeast. Meanwhile, North Tyneside is the most expensive place to buy a home in the North East. - North West
North West England also stands out for its housing affordability, having four of the top 10 most affordable places to buy a home in England.
Burnley is the most affordable place to buy a house in the North West, and Trafford is the least affordable place. - Yorkshire and The Humber
Yorkshire and The Humber are two of the more budget-friendly regions in England. North East Lincolnshire is the most affordable place to live, and York is the priciest spot. - Wales
Wales is one of the more affordable places in the UK. Torfaen is the most affordable place to buy a house, while Vale of Glamorgan is the least affordable place in Wales. - West Midlands
The West Midlands is neither super expensive nor too cheap for housing compared to other areas in England. Staffordshire Moorlands is the most affordable place to buy a house in the West Midlands, and Wychavon is the most expensive. - East Midlands
East Midlands offers a range of affordable housing options. Lincoln is the most budget-friendly option. On the other hand, Rutland is the priciest area. - South West
South West England has a mix of affordable and expensive areas for housing. Plymouth is the cheapest, and Cotswold is the priciest area in the South West. - East of England
The East of England is known for its pricier homes, but there are some deals to be found. Ipswich is the most affordable place, while St Albans is the most expensive place in East England. - South East
South East England can be tough on the wallet for house hunters. Southampton offers the most affordable option. Conversely, Elmbridge is one of the most expensive areas in the South East and across England! - London
London takes the crown as the most expensive place to buy a house in England. Even within the small city, prices vary greatly. Newham offers the most affordable option, while Kensington and Chelsea is the most expensive borough in London (and all of England!).
Conclusion
The housing affordability landscape in the UK in 2024 presents a diverse picture, with significant variations across different regions. Our analysis has shed light on the most and least affordable areas to buy a home, considering factors such as average house prices, income levels, and council taxes.
In Scotland, Angus emerges as the most affordable area, offering housing at a relatively low price compared to residents’ incomes. On the other hand, Kensington and Chelsea in London stands out as the least affordable area, with house prices significantly outpacing income levels, presenting substantial challenges for prospective homeowners.
Across various regions in the UK, there are both affordable and less affordable options. Areas like Burnley in the North West and North East Lincolnshire in Yorkshire and The Humber offer relatively affordable housing options, while places like Trafford in the North West and York in Yorkshire and The Humber present significant affordability challenges.
when making house buying decisions, the analysis highlights the importance of considering factors beyond just house prices, such as income levels, council taxes, and overall quality of life.
Overall, the data underscores the importance of careful consideration and planning when navigating the UK housing market, as affordability varies widely depending on location and individual circumstances.
Methodology
This study analysed 325 areas across England, Scotland, and Wales to assess housing affordability.
Each area was analysed based on the following factors, giving each area a normalized score out of 100. Once the scores were normalized, we calculated the overall performance of each area by combining the individual scores, considering their respective weights assigned based on their importance. By applying appropriate weights to the normalised scores, we created a composite score for each area. The final composite score, ranging from 40 to 85 (to give a more realistic view for the readers), reflects a statistically meaningful assessment of each area’s overall affordability.
The final dataset does not store the individual weighted/normalised scores for each feature; only the actual feature values are stored.
The criteria are as follows:
Average House Price (January 2024)
The average house price for each area as of January 2024 was considered. This indicates the average cost of purchasing a property in a particular area. Data was sourced from the GOV.UK’s House Price Index.
Percentage of Average House Price Change Since 2020
This factor captures the percentage change in average house prices from 2020 to January 2024, providing insights into market trends and price stability. Data was sourced from the GOV.UK’s House Price Index.
House Price to Couples Earnings Ratio
This ratio was calculated by dividing the average house price by the median annual earnings for couples. It provides a measure of housing affordability relative to local income levels. The median income data was sourced and processed from ONS employee earning data.
Average Council Tax The average council tax for each area and all bands from A to I was considered, as this is an ongoing cost impacting overall housing affordability. Data was sourced from completelymoved.co.
Methodology: Further Details
- The actual scores are padded to 40-85 for more realistic-looking scores.
- Weights for each feature are as below and are taken to be a bit more subjective:
Feature Weight Average House Price -0.5 Percentage of Average House Price Change Since 2020 -0.2 House Price to Couples Earnings Ratio -0.2 Average Council Tax -0.1