A surprising contender has emerged as the most affordable town in the West Midlands for 2025, outshining housing markets in Birmingham and the Black Country. Newcastle-under-Lyme stands out, with average property prices costing less than three times the typical household income.
Nationally, Shildon in County Durham has been highlighted by Zoopla as Britain’s most budget-friendly town for working families seeking to buy a home in 2025. This trend reflects a broader geographical divide in housing affordability across the UK, with the North East and parts of Scotland offering the greatest value for money.
Zoopla’s analysis ranks towns based on their house price-to-earnings ratios, comparing median home values to estimated annual household incomes for dual-income families earning local wages. Here are some key highlights:
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- North East: Shildon — £73,900 average home price, £60,300 income, ratio 1.23
- Scotland: Cumnock — £83,700, £67,200, 1.25
- Wales: Ferndale — £105,300, £60,500, 1.74
- West Midlands: Newcastle-under-Lyme — £182,200, £63,300, 2.88
- South East: Dover — £242,500, £68,400, 3.55
- London: Tower Hamlets — £455,400, £91,700, 4.97
Newcastle-under-Lyme’s affordability ratio of 2.88 significantly outperforms nearby urban centres, making it the best choice for buyers seeking value within the region. Meanwhile, the overall UK average sees properties costing about 4.4 times combined annual incomes, slightly improving from 4.5 in 2024.
At the other end of the spectrum, towns like Beaconsfield in Buckinghamshire represent the pinnacle of unaffordability, with average property prices exceeding £1 million—more than 15 times local household income. Areas close to London such as Gerrards Cross and Esher also carry premium price tags, driven by commuter demand.
Richard Donnell, Executive Director at Zoopla, explains the significance: “The stark contrast between towns like Shildon and Beaconsfield highlights the daunting challenges facing homebuyers today. While northern regions lead in affordability, pockets of high cost remain even there. In the South, reasonably priced homes exist but are limited, forcing many buyers to expand their search radius.”
This data underlines the shifting landscape of UK homeownership, where buyers must actively weigh affordability against location and expand horizons to find competitive housing markets.