In some areas, families could get on the housing ladder for under £400 a month
Families looking to buy a three-bedroom home could face monthly mortgage repayments as low as £325 in some parts of the UK, according to new analysis from Zoopla.
The property website said Shildon, in County Durham, was the most affordable town for families among 300 locations assessed. The town’s average three-bedroom price was £82,500, with a value-to-earnings ratio of 1.36 times.
Zoopla based its ranking on towns that attract the highest interest from families viewing three-bedroom listings, using page views per property as a proxy for popularity. It then ordered those towns by affordability using the value-to-earnings ratio, defined as the number of years’ combined salary for two adults needed to buy a home.
The analysis was published as the market moves into the Easter period, traditionally a busier season for buying and selling. Zoopla said its figures suggested transactions were holding up as committed buyers continued with plans to move, despite uncertainty linked to events in the Middle East.
Zoopla’s list showed a concentration of lower-cost towns in the North East, Scotland and Wales. The top three locations were all in the North East of England, it said, with Shildon at the top. Zoopla added that prices in Shildon were about three times lower than in the most affordable towns in the South East.
In Wales, Zoopla identified Ferndale, in the Rhondda Valley, as the most affordable town for families, with an average three-bedroom value of £113,000 and a price-to-earnings ratio of 1.85 times. In Scotland, it highlighted Cumnock, in East Ayrshire, south of Glasgow, where three-bedroom homes averaged £113,600 and the value-to-earnings ratio stood at 1.68 times.
| The top 10 most affordable towns in the UK | ||||||
|---|---|---|---|---|---|---|
| Rank | GB region / country | Postal town | Average value of a 3-bed home | Estimated earnings required (2 full-time earners) | Value to earnings ratio (Jan 2026) | Estimated monthly mortgage repayment (80% LTV) |
| 1 | North East | Shildon | £82,500 | £60,800 | 1.36 | £325 |
| 2 | North East | Peterlee | £98,750 | £60,800 | 1.62 | £389 |
| 3 | North East | Ferryhill | £99,700 | £60,800 | 1.64 | £392 |
| 4 | Wales | Ferndale | £113,000 | £61,000 | 1.85 | £445 |
| 5 | Scotland | Cumnock | £113,600 | £67,700 | 1.68 | £447 |
| 6 | North East | Stanley | £114,450 | £60,800 | 1.88 | £450 |
| 7 | North East | Crook | £118,100 | £60,800 | 1.94 | £465 |
| 8 | Scotland | Irvine | £120,900 | £70,900 | 1.70 | £476 |
| 9 | North East | Ashington | £130,800 | £62,300 | 2.10 | £515 |
| 10 | North East | Hartlepool | £132,600 | £59,000 | 2.25 | £522 |
| Source: Zoopla | ||||||
The findings also pointed to a regional split in affordability. Zoopla said lower prices were available in every region, but higher values in southern England reduced affordability and increased typical monthly mortgage costs.
Dover was named the most affordable town in the South East, but Zoopla said the value-to-earnings ratio there was above four times, with monthly mortgage repayments of about £1,100. It added that Lowestoft in the East of England and Cinderford in the South West were the most affordable options for families across the south of England, with value-to-earnings ratios ranging from 3.6 to 3.8 times.
| The most affordable towns within each region/country | ||||||
|---|---|---|---|---|---|---|
| Rank | GB region / country | Postal town | Average value of a 3-bed home | Estimated earnings required (2 full-time earners) | Value to earnings ratio (Jan 2026) | Estimated monthly mortgage repayment (80% LTV) |
| 1 | North East | Shildon | £82,500 | £60,800 | 1.36 | £325 |
| 4 | Scotland | Cumnock | £113,600 | £67,700 | 1.68 | £447 |
| 6 | Wales | Ferndale | £113,000 | £61,000 | 1.85 | £445 |
| 9 | North West | Egremont | £139,500 | £69,200 | 2.02 | £549 |
| 62 | Yorks & H | Immingham | £157,700 | £59,100 | 2.67 | £621 |
| 75 | E Mids | Gainsborough | £175,300 | £62,900 | 2.79 | £690 |
| 162 | W Mids | Telford | £215,300 | £64,300 | 3.35 | £847 |
| 208 | South West | Cinderford | £272,250 | £74,800 | 3.64 | £1,071 |
| 225 | Eastern | Lowestoft | £234,800 | £61,900 | 3.79 | £924 |
| 287 | South East | Dover | £280,300 | £68,900 | 4.07 | £1,103 |
| Source: Zoopla | ||||||
“The housing market is entering one of its busiest periods, with the most homes for sale in many years and at a time when buyers are becoming increasingly focused on value for money,” said Richard Donnell (pictured right), executive director at Zoopla.
“What stands out is the scale of the affordability gap across the UK. In parts of the North East, families can buy a home for much less than the cost of buying in the most affordable towns in southern England.
“While there are affordable options in every region, buyers often face a trade-off between lower house prices and their proximity to major employment centres. Many of the most affordable towns in southern England are coastal meaning better affordability may come at the cost of more expensive travel which may not work for everyone. The tools are out there to help buyers make better informed decisions and understand the trade-offs to make a successful move in 2026.”
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