Revealed: The best and least expensive areas to buy a home, by region in the UK (2023)

No matter whathouse prices have fallen over the past yearhigher mortgage rates will push many buyers out of the housing types and areas in which they want to live.

According to real estate agent Hamptons International, one in four movers moved to a cheaper 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.

“Although moves are still driven by the three Ds – debt, divorce and death – first-time buyers have defied the odds, buying a record 28 per cent of homes in Britain this year.

"But as higher mortgage rates limit how much they can borrow, many are adapting by buying smaller homes in more affordable locations."

No one will be more affected by higher mortgage rates than first-time buyers.

According to Halifax research, the cost of a first home mortgage has risen by 25 per cent in the last 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 was not equally felt throughout the country. This will depend somewhat on the average house price and income in each particular area.

Cost of typicalA house in Britain is now worth 6.7 times the average income, according to Halifax — but that varies considerably depending on where you live.

The cheapest local area to live in Britain is Inverclyde in Scotland, where average house prices are just 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 average annual income in each area.

According to Halifax figures, the average house price in London's two most expensive boroughs is £915,000 - almost seven times more than the average house price in Inverclyde of £134,000.

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 authorities in each region to show shoppers where they can look for something affordable.

While it doesn't necessarily make sense for most homebuyers to choose between the most expensive and cheapest locations in a particular region, it at least shows how different local areas can be when it comes to housing affordability - and some are quite close geographically. one to another.

In the North West, for example, Blackpool and Trafford, in Greater Manchester, are only 70 kilometers away by road.

Yet Blackpool's house prices (£134,000) are 3.4 times annual income compared to Trafford's (£330,000) house price to earnings ratio of 8.5 times.

Darren Sellwood, senior branch manager of estate agents Entwistle Green in Blackpool, says Blackpool is not only a great place to live, but also offers excellent opportunities for buy-to-let investors looking for rental income and long-term property growth. house prices.

He says: 'If I were looking to invest in property for a living or as a source of income, I would look no further than Blackpool - a vibrant coastal town with affordable property and a thriving tourism industry.

“It has legendary attractions, beautiful beaches and significant ongoing development projects – investing millions of private and public money.

'These include the Talbot Gateway project, the relocation of 3,500 DWP staff to Blackpool town center and the planned new Multiversity training centre.'

Another coastal location offering 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 south Surrey, where house prices are typically 13.2 times incomes.

Gemma Atkin, senior branch manager of estate agents Fox & Sons in Portsmouth, says: 'With the beach and sea on your doorstep, the sunny city of Portsmouth offers easy access to other big cities such as London and Bournemouth, without the worry of high house prices. how to pay in these parts.

'We have a range of properties from different periods as we are in such a rich historical city that appeals to everyone.

'With good transport links including buses, ferries, trains and city buses, your chosen lifestyle - urban or rural - is within easy reach.'

In London, the City of London is one of the most expensive local authorities, with house prices 16 times the average income in the area.

Eight miles east of the City of London is London's cheapest local authority, Barking and Dagenham, where house prices are 5.4 times the average income.

Barking and Dagenham estate agents were keen to point out that both areas should attract people looking to live and work in London.

Jeff Vedgen, Barking branch manager of estate agents William H Brown, said: 'Barking is an emerging cosmopolitan area of ​​London. It is now considered the new gem of the East End.

Barking's new 'settlers' were attracted by its dynamic and lively atmosphere and fantastic transport links to the city and the West End.

"Along with established networks, it now has an Uber shipping link, making it the perfect place to settle."

Lee Clark, Senior Valuation Manager at Bairstow Eves in Dagenham adds: 'Dagenham has fantastic transport links. It has three line stations providing direct access to London for passengers, as well as direct access to the A13 and M25.

'The council additionally 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 accessible.'

Someone living and working in the West Midlands could potentially choose between the Cotswolds, where house prices are 11.1 times the average income, and Stoke-on-Trent, where prices are just 3.9 times the average annual income.

Meanwhile, those looking to move up the property ladder in Yorkshire and Humberside may want to consider Hull over Harrogate as they are only 40 miles away.

Hull is the cheapest city 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 the average annual income.

Although moving to another region has become easier for many thanks to hybrid work, this is not the case for everyone.

Henry Pryor, a professional buyer's agent and real estate expert, expects more first-time buyers and movers to compromise on location given higher mortgage costs.

He says: “For the last 100 years, people have been moving to places they could afford. They made a compromise.

“With the rise of working from home, many people can afford to live away from work, and for those lucky enough to do so, this is a great luxury.

“For those who can't work from home – nurses, teachers, firefighters or factory workers – it's not an option.

"They would have to change jobs to move to a cheaper place - something that more and more people are having to take into account."