Time for investors to swoop on unaffordable homes?
Time for investors to swoop on unaffordable homes?
Updated Apr 17, 2026
Despite interest rate cuts and earnings growing by 3.7 per cent in the past year, the cost of buying a house is out of reach for many, who will have to rent.
This sad state of affairs presents an opportunity for landlords ready to take action regarding compliance and other measures imposed by Labour.
Buy-to-let mortgages are at the cheapest rates for many months, and queues of potential tenants are spilling onto the streets from letting agent offices.
Property portal Zoopla has published the results of serious number crunching to identify the towns and cities with the most affordable homes and best returns on investment.
Buying six for the price of one
The research revealed that property values are up to 5.8 times higher than the average annual household income for buyer couples in London. In contrast, the cheapest properties are 2.1 times the income in the Northeast.
The data's simple message is to look north for the cheapest homes to buy. The farther from London landlords go, the more affordable the homes.
This is especially true in the Northeast, where investors can buy six average-priced homes and rent them for around £4,200 or £700 a month each, compared to one in London attracting £2,200 a month rent.
House affordability by UK region
Region
Average house value (Oct 24)
2024 value-to-earnings ratio
2023 value-to-earnings ratio
YoY change
Average monthly regional rent
London
£560,800
5.8
6.0
3.40%
£2,200
South East
£408,400
4.9
5.1
4.80%
£1,421
East of England
£364,700
4.4
4.6
4.80%
£1,301
South West
£326,500
4.3
4.5
4.90%
£1,197
West Midlands
£245,900
3.4
3.4
2.10%
£1,020
East Midlands
£241,100
3.2
3.4
4.00%
£891
Wales
£215,400
3.1
3.1
2.00%
£911
North West
£209,700
2.9
3.0
2.60%
£1,069
Yorkshire and The Humber
£199,500
2.8
2.9
4.30%
£904
North East
£146,500
2.1
2.2
1.60%
£709
Great Britain average
£307,600
3.8
3.9
3.70%
£1,162
Source: Zoopla and Homelet
Most affordable towns in each UK region
Region
Postal town
Average house value (Oct 24)
North East
Shildon
£73,200
Wales
Ferndale
£101,600
Yorkshire and The Humber
Hull
£119,800
North West
Workington
£123,700
West Midlands
Stoke-On-Trent
£139,200
East Midlands
Gainsborough
£170,000
East of England
Wisbech
£209,800
South West
Plymouth
£222,200
South East
Dover
£250,000
London
Croydon
£417,800
Source: Zoopla
The Zoopla report says: “Over the last 12 months, house prices fell by two-thirds in Southern England, excluding London, with the most significant improvements in affordability in the South East, South West and East. Wisbech in Cambridgeshire and the coastal towns of Dover and Great Yarmouth are the most affordable places to buy in the south.
In London, Croydon. Greenwich, Barking and Dagenham are among the most affordable places to buy.
