Revealed: The most AND least affordable areas to buy a home in every UK region
Despite home prices falling over the past year, higher mortgage rates will push many buyers out of the types of homes and areas they want to live in.
According to real estate agent Hamptons International, one in four movers moved to a less expensive area this year, up from one in five in 2022.
Aneisha Beveridge, head of research at Hamptons International, says: ‘Households are slowly but surely adjusting to higher rates.
“While movers are still spurred on by the three Ds – debt, divorce and death – first-time buyers have gone against the odds, buying a record 28 per cent of Britain’s homes this year.
“But because higher mortgage rates limit how much they can borrow, many are adapting by buying smaller homes in more affordable locations.”
Move somewhere cheaper: One in four households moved to a cheaper area this year, compared to one in five in 2022, according to Hamptons
No one will be more affected by the higher mortgage interest than first-time buyers.
According to Halifax research, first-time home mortgage costs have increased by 25 percent in the past year alone, from an average of £1,095 a month to £1,364, due to higher interest rates.
However, the impact of higher interest rates has not been felt equally across the country. It will depend somewhat on the average house price and income in each particular area.
According to Halifax, the cost of a typical British home is now 6.7 times median income, but this varies considerably depending on where you live.
The cheapest local area to live in Britain is Inverclyde in Scotland, where average house prices are only 2.9 times the average annual income.
The most expensive local area to live in is Westminster or the City of London, where house prices are as much as 16 times the median annual income in each area.
According to Halifax data, the average house price in London’s two most expensive boroughs is £915,000 – almost seven times more expensive than Inverclyde’s average £134,000 house price.
Swap the city of London for Inverclyde? Average house prices in London’s local government are almost seven times more expensive than those in Scotland’s cheapest local government
While many people are not necessarily willing to move from one end of the country to the other to find cheaper housing, some may be willing to move closer to home.
Halifax has provided This is Money with a breakdown of the most expensive and cheapest local governments in each region to show buyers where to look for something affordable.
While it doesn’t necessarily make sense for the majority of home buyers to choose between the most expensive and cheapest locations in a given region, it does at least show how different local areas can be when it comes to housing affordability – and some are geographically quite different. close to each other.
To the north west, for example, Blackpool and Trafford, in Greater Manchester, are only 70 kilometers apart by road.
And yet house prices in Blackpool (£134,000) are 3.4 times annual income compared to Trafford’s (£330,000) 8.5 times house price/earnings ratio.
Swap Trafford for Blackpool: Average house prices are £134,000 in Blackpool, compared to Trafford’s £330,000. The two areas are only 49 miles apart
Darren Sellwood, senior branch manager at Blackpool estate agent Entwistle Green, says Blackpool is not only a great place to live, but also offers excellent opportunities for both buy-to-let investors looking for rental income and long-term growth of the property. house prices.
He says: ‘If I wanted to invest in a property to live in or as a source of income, I’d look no further than Blackpool – a vibrant coastal town with affordable property options and a thriving tourist industry.
“It has iconic attractions, beautiful beaches and substantial ongoing development projects – investing millions of private and public money.
‘This includes the Talbot Gateway Project, the relocation of 3,500 DWP employees to Blackpool Town Center and the new planned Multiversity training centre.’
Another coastal location that offers the best value for money in the region is the city of Portsmouth, where average house prices are 5.2 times annual income.
Just 60 miles north-east of Portsmouth, Mole Valley is in southern Surrey, where house prices are typically 13.2 times higher than income.
Moving to Portsmouth: The town has good transport links including buses, ferries, trains and coaches and a range of properties from different eras, according to a local agent
Gemma Atkin, senior branch manager at Fox & Sons estate agent in Portsmouth, says: ‘With the beach and sea on your doorstep, the sunny city of Portsmouth offers easy access to other major cities such as London and Bournemouth, without worrying about the high house prices. as in these areas to pay.
‘We have a range of properties from different eras as we are in such a rich historic city, which appeals to everyone.
‘With good transport links including buses, ferries, trains and coaches, your chosen lifestyle – urban or rural – is within easy reach.’
| Region | Most and least expensive | Comparison of average house prices | Distance by road | |
|---|---|---|---|---|
| eastern England | Sint Albans versus South Holland | £564,000 vs £205,000 | 83 miles | |
| East Midlands | Harborough vs. Mansfield | £323,000 vs £179,000 | 59 miles | |
| Greater London | City of London vs Barking | £915,000 vs £310,000 | 8 miles | |
| North East | Northumberland vs South Tyneside | £202,000 vs £143,000 | 38 miles | |
| North West | Trafford vs Blackpool | £330,000 vs £134,000 | 49 miles | |
| Scotland | East Renfrewshire vs Inverclyde | £274,000 vs £134,000 | 34 miles | |
| Southeast | Mole Valley vs Portsmouth | £571,000 vs £224,000 | 60 miles | |
| South West | Bath vs Plymouth | £361,000 vs £185,000 | 121 miles | |
| Wales | Monmouthshire vs Neath/Port Talbot | £307,000 vs £139,000 | 81 miles | |
| West Midlands | Cotswolds vs Stoke-On-Trent | £411,000 vs £143,000 | 95 miles | |
| Yorkshire and Humberside | Harrogate vs. Hull | £347,000 vs £120,000 | 69 miles | |
| Credit: Halifax |
In London, one of the most expensive local authorities is the City of London, where house prices are 16 times higher than median incomes in the area.
Eight miles east of the City of London is London’s cheapest local government, Barking and Dagenham, where house prices are 5.4 times median incomes.
Estate agents from Barking and Dagenham were keen to point out that both areas should appeal to people wanting to live and work in London.
Jeff Vedgen, branch manager at estate agent William H Brown, in Barking said: ‘Barking is an emerging cosmopolitan area of London. It is now regarded as the new jewel of the East End.
‘The new ‘settlers’ of Barking have been attracted by its dynamic and vibrant feel and fantastic transport links to the city and West End.
“Together with the established networks, it now has an Uber boat connection, making it a perfect place to settle.”
Lee Clark, senior valuation manager at Bairstow Eves in Dagenham adds: ‘Dagenham has fantastic transport links. It has three district line stations providing direct access for commuters to London, as well as direct access to the A13 and M25.
‘The council further benefits from several parks, as well as Beam Country Park, where homeowners can enjoy open green space in an area of London that is still very affordable.’
Moving to Dagenham? The city has fantastic transport links, with three district line stations giving commuters direct access to London, according to a local agent
Someone living and working in the West Midlands could potentially choose between the Cotswolds, where house prices are 11.1 times median income, and Stoke-on-Trent, where prices are only 3.9 times median annual income.
Meanwhile, those looking to get up the property ladder in Yorkshire and Humberside might want to consider Hull over Harrogate as they are only 70 miles apart.
Hull is the cheapest borough in the region, with average house prices 3.3 times the region’s median income.
Meanwhile, Harrogate is the most expensive place to buy in the region, with house prices 9.6 times higher than median annual income.
Although moving to another region has become easier for many thanks to hybrid working, it is not the case for everyone.
Henry Pryor, a professional buyer’s agent and real estate expert, expects more first-time buyers and home movers to compromise on location given higher mortgage costs.
He says, “For the past 100 years, people have moved to places they could afford. They have compromised.
“With the increase in working from home, many people can afford to live further away from work and for those lucky enough to be able to do so, this is a huge luxury.
“For those who can’t work from home – the nurses, the teachers, the fireman or the factory worker – this is not an option.
“They would have to change jobs to move to a cheaper place – something that more and more people have to take into account.”
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