Families can get on the housing ladder for as little as £325 a month in parts of the North East, with Shildon in County Durham emerging as the UK’s most affordable town for three-bedroom homes, according to new research from Zoopla.
The analysis, released as the market enters the busy Easter moving season, shows northern England, Scotland and Wales dominating affordability rankings. Despite uncertainty from Middle East tensions, Zoopla data shows sales activity holding up as serious buyers press ahead with moves.
North East leads affordability rankings
Shildon, a quiet town with industrial heritage near Bishop Auckland, has average three-bedroom house prices of just £82,500. With a value-to-earnings ratio of 1.36 – meaning two earners need only 1.36 years of combined salary to buy – it offers mortgage payments roughly three times cheaper than the most affordable towns in the South East.
Six of the top ten most affordable family towns are in the North East, with Peterlee (£389/month), Ferryhill (£392/month) and Stanley (£450/month) following closely behind Shildon. Ferndale in Wales (£445/month) and Cumnock in Scotland (£447/month) round out the regional spread.
The findings follow last week’s Nationwide data crowning Inverclyde as Britain’s most affordable area, reinforcing the north-south divide in housing accessibility.
Southern families face steep barriers
The affordability picture reverses sharply below the Midlands. Dover ranks as the South East’s most affordable town for families, yet monthly mortgage payments there reach £1,100 – more than three times the cost in Shildon – with a value-to-earnings ratio exceeding 4x.
Lowestoft in the East of England and Cinderford in the South West top their regional rankings with ratios of 3.6x to 3.8x, still significantly higher than northern alternatives.
The data arrives as spring market activity holds steady despite geopolitical pressures, with buyers in all regions weighing up value against location preferences.
What this means for landlords
- If you’re targeting first-time buyer exits: Properties in the most affordable towns may sell quickly to young families, but yields in these areas typically sit lower than average.
- Watch for: North-south yield gaps – the cheapest purchase areas rarely offer the strongest rental returns.
- Bottom line: Regional affordability data can help identify where tenant demand may ease as more renters become buyers.
Editor’s view
The numbers make the north-south housing divide impossible to ignore. A family in Shildon can own a three-bedroom home for what a Londoner might spend on a parking space. For landlords, these affordability gaps signal where future tenant pools are most likely to shrink – and where they will remain deep.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 24 March 2026
Sources: Zoopla research via ONS Housing
Related reading: Inverclyde crowned UK’s most affordable area as 70 percent see improvement
