Shildon Crowned Australia’s Most Affordable Town for Families
In a significant win for budget-conscious families, Shildon, a small community in County Durham, has been recognised as the most affordable town in the UK for purchasing a home. This accolade, bestowed by property experts Zoopla, highlights the town’s exceptional value for money, particularly for those looking to buy a three-bedroom family home.
Shildon, a town of approximately 10,000 residents, carries a rich industrial legacy, notably earning the distinction of being the world’s first railway town over two centuries ago. Now, it adds another prestigious title to its name, celebrated for its remarkable affordability.
The ranking is determined by the ‘value to earnings’ ratio, a metric that indicates how many years of an average salary it would take for two adults to purchase a property. Shildon boasts the lowest ratio, signifying its accessibility for aspiring homeowners.
Shildon: A Historical Gem with Modern Affordability
The historical significance of Shildon is undeniable. It was the very first place in the world to witness a steam locomotive hauling passengers on a public railway back in 1825. Today, its charm extends beyond its past, offering an average house price of a mere £82,500.
For families considering a move, the financial outlook in Shildon is particularly encouraging. The estimated monthly mortgage repayment for a property here, assuming an 80 per cent loan-to-value ratio, stands at a modest £325. The required earnings for a couple to purchase a home in Shildon are estimated at £60,800. This translates to a value-to-earnings ratio of just 1.36x, making homes in Shildon approximately three times cheaper than those in the most affordable areas of the South East.
Zoopla’s comprehensive analysis considered the 300 most popular towns for families seeking three-bedroom homes, basing its popularity on viewing data. These towns were then meticulously ranked by affordability, with a clear trend emerging: towns in northern England, Scotland, and Wales generally outperformed their southern counterparts.
The Top Contenders for Affordable Family Living
Following closely behind Shildon in the rankings were other towns that offer significant value for money.
- Peterlee, also located in County Durham, secured the second spot with a value-to-earnings ratio of 1.62x. The average property value here is £98,750, with estimated required earnings of £60,800 and a monthly mortgage payment of £389.
- Ferryhill, another gem from County Durham, claimed third place with a ratio of 1.64x. Its average property value is £99,700, requiring earnings of £60,800 and resulting in a monthly payment of £392.
- Ferndale in the Rhondda Valley, Wales, ranked fourth with a 1.85x ratio. Properties here average £113,000, with required earnings of £61,000 and a monthly repayment of £445.
- Cumnock in East Ayrshire, Scotland, topped the Scottish list and ranked fifth overall, boasting a 1.68x ratio. The average value is £113,600, with earnings of £67,700 and a monthly payment of £447.
Several other North East England towns also featured prominently in the top ten, underscoring the region’s affordability:
- Stanley (County Durham) at 1.88x
- Crook (County Durham) at 1.94x
- Ashington (Northumberland) at 2.10x
- Hartlepool (County Durham) at 2.25x
Irvine in North Ayrshire rounded out the top ten with a ratio of 1.7x.
The Affordability Divide Across the UK
While affordable towns can be found in every region of the United Kingdom, Zoopla’s research highlights a significant disparity, particularly between the North and the South of England. Higher property prices in the southern regions inevitably lead to reduced affordability and higher monthly mortgage outlays.
Even the most affordable town in the South East, Dover in Kent, presents a considerably higher value-to-earnings ratio of 4.07x, with monthly payments reaching £1,100. Similarly, in the East of England, Lowestoft in Suffolk leads affordability at 3.60x, and Cinderford in Gloucestershire tops the South West at 3.64x.
Richard Donnell, Executive Director at Zoopla, commented on the current market conditions: “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.”
He further elaborated on the stark affordability gap: “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.”
Donnell also noted the trade-offs buyers might face: “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.”
Zoopla stressed the availability of tools to assist buyers in making informed decisions, particularly for those looking to make a move in the coming year.
Methodology Behind the Rankings
Zoopla’s analysis was based on a comprehensive dataset, considering 300 towns with at least ten three-bedroom homes listed for sale in the three months leading up to January 2026, and a total stock exceeding 1,000 such properties.
- Local Earnings: Estimated using Annual Survey of Hours and Earnings (ASHE) data at a local authority level for a single earner, then doubled for a two-earner household. These figures were adjusted to reflect January 2026 and rounded to the nearest £100.
- Monthly Mortgage Payments: Calculated based on the typical monthly repayment for a three-bedroom house, assuming a 20 per cent deposit, a 30-year repayment period, and an interest rate of 4.25 per cent.
- Exclusions: Major cities, including Greater London, were not included in the analysis.
This research provides valuable insights for families navigating the property market, highlighting the significant regional differences in affordability and empowering them to make strategic decisions about where to find their next home.
