"It’s shocking that a young professional in Westminster needs over twenty years of net income to buy a typical flat, while someone in Sunderland can do the same in under five"
- Antonia Medlicott - Investing Insiders
A new nationwide study of UK wages and house prices has revealed significant regional variation in housing affordability, with one Lancashire town emerging as the most affordable place to live, while areas near London remain the least accessible.
The cost of living index, published by Investing Insiders, compares local wage data against regional housing costs for both buying and renting, offering a detailed picture of which parts of the UK are most and least affordable.
The findings coincide with renewed debate around the Lifetime ISA (LISA), with many calling for reform. According to the study, the LISA property cap still covers 85% of local authorities. However, house prices in 54 out of 350 areas exceed the threshold, including locations such as Westminster, Oxford, and Cambridge.
Burnley tops the index as the UK’s most affordable place to live, receiving a perfect score. The median weekly salary in the Lancashire town is £530.10, equating to an annual income of £27,565.20. When compared to an average house price of £120,719, the typical property costs just 4.38 times the average annual income. Local rents also reflect this affordability, with the average monthly cost of £599 covered in just over a week’s wages.
Kingston-upon-Hull ranks second. The East Yorkshire city offers higher weekly wages at £575.50, although house prices are also slightly higher at £131,374. Average monthly rent is £642.
In third place is Hartlepool, which has the lowest average monthly rent in the top 10 at £546, but also the lowest average weekly earnings at £523.20.
Cumberland is fourth, buoyed by the highest weekly salary in the top 10 at £612.30. While average house prices stand at £165,099 and monthly rent at £618, affordability remains relatively strong.
Neath Port Talbot, located in South Wales, ranks fifth. Average wages there are £601.90 per week, while house prices reach £161,605, placing the area slightly below Cumberland in the rankings.
Other areas in the top 10 include Blaenau Gwent in sixth, followed by Hyndburn, County Durham, Stoke-on-Trent, and Sunderland.
At the opposite end of the scale, the ten least affordable places in the UK are all located in London. The Royal Borough of Kensington and Chelsea received the lowest score, with an average house price of £1,345,813 and private monthly rent of £3,663. These figures contrast with a median weekly wage of £703.70, making the borough the most expensive place to live when compared to income.
The rest of the bottom five includes Westminster, Camden, Hammersmith and Fulham, and Richmond upon Thames. Each has an average house price exceeding £750,000.
The report also highlights wider affordability issues across the UK. On average, rent accounts for 47% of monthly earnings. In some regions, this figure drops to 25%, while in Westminster, rent equates to 130% of the average monthly salary, meaning most residents must share accommodation to afford rent.
“These figures lay bare the widening gap between the UK’s most and least affordable housing markets,” said Antonia Medlicott, founder and managing director of Investing Insiders. “It’s shocking that a young professional in Westminster needs over twenty years of net income to buy a typical flat, while someone in Sunderland can do the same in under five."
“Our mission is to turn data into actionable insight. Whether you’re saving for a first home or debating a relocation, these numbers prove there are realistic paths to ownership, if you know where to look and how to play the system.”
Medlicott also offered advice to those saving for a home: “It’s great to see that the Lifetime ISA is still in good working order for 85 per cent of the UK, and first-time buyers should look to maximise their usage of the £4,000 a year allowance.
“However, for those who have reached that limit, already own a home, or are in an area where the house will exceed the £450,000 limit, it can be confusing what to do. Whilst there are many options available, a Stocks & Shares ISA can be hugely beneficial, as it is most useful when used for the long term, like owning a home.
“The historical performance shows that these investments are great when aiming for larger life goals such as saving for a home, and can allow you to achieve the necessary funds much quicker for a deposit.”
