The latest research from Warwick Estates, reveals where the nation’s most affordable new-build housing markets are based on the current new-build house price to income ratio.
Warwick Estates analysed current new-build house price data in relation to gross earnings across each area of the market to find where offers the best levels of affordability for new-build homebuyers.
In Britain, the average new-build house price is £354,811 while the average gross salary sits at £31,770, creating a new-build affordability ratio of 11.2.
At a national level, England is home to the highest ratio at 11.3, falling to 10.0 in Wales and 8.6 in Scotland – making it the most affordable new-build nation in Britain.
The North East is home to the lowest affordability ratio of all regions of England at 8.4, followed by Yorkshire & Humber (9.2), and then the North West (9.8).
At a local authority level, the most affordable new-build market in England is Hyndburn, Lancashire, where an average new-build price of £115,420 and average salary of £25,539 make an affordability ratio of 4.5.
This is followed by Burnley, Lancashire (5.5); Copeland, Cumbria (5.5), Stockton-on-Tees (6.1), Barrow-in-Furness (6.6), and County Durham (6.6).
The least affordable local authority areas in England are Rochford, Essex (23.4); South Hams, Devon (21.3); Harlow, Essex (21.1); Cotswold, Gloucestershire (20.3); Gravesham, Kent (20.1); and North Devon (18.6).
COO of Warwick Estates, Bethan Griffiths, commented: “While new-build homes tend to carry a house price premium versus the wider market this doesn’t necessarily mean they’re less obtainable to the average homebuyer. As with the regular market, this affordability is largely dependent on location which influences both the value of property as well as the average earnings on offer.
The good news is that the nation’s housebuilders recognise this and so in areas with lower levels of income, you’ll also find new-build values are far lower. In fact, these areas account for some of the most affordable when it comes to the average new-build house price to income ratio.”