Where are the cheapest places to buy a house in the UK?

According to Zoopla, households where both people are working full-time typically face paying 3.8 times their average annual household income for a home.

Someone who is single faces paying 7.6 times their annual income on average to buy a home in Britain.

(Image: Zoopla)

It found that in Cumnock in East Ayrshire, Scotland, and Shildon in County Durham in the North East of England, the average house price is 1.1 times typical household earnings.

The most affordable location in the London area was still above the national average affordability ratio for a two-earner household.

Zoopla identified Croydon as the most affordable location in the capital, with homes there costing around 4.7 times local incomes.

Almost half of prospective first-time buyers (47 per cent) cited affordability as a major hurdle, according to the survey of more than 4,000 people in September.

To find the most affordable areas within Britain’s nations and regions, Zoopla analysed house value-to-earnings ratios, based on a two-earner household on an average salary for the local area.

Izabella Lubowiecka, a senior property researcher at Zoopla, says: “London remains the least affordable area for home-buyers.

“Those in London looking to get more for their money may want to consider buying in one of the South East and East of England’s commuter belt, where there are many towns that are more affordable than London.

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“The same is true in markets around many regional cities and we see buyers seeking value for money.”

NAEA (National Association of Estate Agents) Propertymark president Toby Leek said: “Affordability for many is a real issue and, as purse strings remain tightened despite easing factors such as slight drops in inflation, prospective and current home-owners will be looking to enter the market with caution, but also, in some cases, further flexibility in where they nest themselves.

“As many people no longer have the restriction of basing themselves from a static office full-time, they are able to look elsewhere to actually step on to the housing ladder for the first time or find their next, more affordable dream home.”

(Image: Zoopla)

A return of the new town model?

The report was released as research commissioned by Santander UK found that almost three-quarters (73 per cent) of potential first-time buyers would consider moving to new towns.

This compares with 57 per cent of “second steppers” anticipating moving from their first-owned property and 41 per cent of those looking to downsize later in life.

Graham Sellar, head of business development – mortgages, at Santander, says: “New towns have incredible potential but, to maximise the impact they can have, they must be built with the people who will call them home in mind.

“Our research shows just how important it is to create lively communities with green spaces as well as easy access to healthcare when it comes to appealing to more home-buyers.”