Blackpool and the Ribble Valley named in most affordable places to buy a home in the UK, new study shows

Two Lancashire areas have been named in the top ten most affordable places to buy a home in the UK, according to a new study.

The Ribble Valley ranked 1st and Blackpool ranked 9th as most places as the study looked at how income growth and house price increases have aligned over the past 20 years in Local Authorities across the UK.

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Researchers at Bird & Co have explored recently released ONS data to present a detailed overview of how these two factors compare over time and reveal how income and house prices have impacted house sales, if at all.

The analysis of the data from 2003-2023 shows Blackpool has one of the smallest disparities between house price increase and income percentage change, suggesting residents in the area are more likely to be able to afford housing whilst maintaining a good quality of life.

Property sales have plummeted since 2022, suggesting that even with steady house prices and income, there are other factors preventing homeownership, such as a lack of availability in Blackpool. 

Daniel Chard, Partner at Bird & Co, said, “The findings reveal Blackpool as one of the most affordable places to buy a home in the UK, which is encouraging news for prospective buyers in the region.

“However, it's evident that factors beyond affordability are holding people back from becoming homeowners. Even when house prices and incomes align closely, property sales remain somewhat unaffected.

“This study should inspire those looking to buy a home to consider the long-term relationship between income and house prices to better understand affordability.

To get a sense of affordability across all locations in the UK, Bird & Co worked out the percentage change in house prices from September 2003 to September 2023, and the same for income from March 2003 to March 2023, and found the difference between these figures. 

From this, the areas with the largest and smallest disparity between house price and income growth became apparent.

The only area to present a unique case with a negative disparity was Ribble Valley in Lancashire, suggesting that wages have grown faster than house prices. 

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This rare scenario can indicate an exceptionally affordable housing market, potentially attracting new residents and investment.

Daniel said: “This study should inspire those looking to buy a home to consider the long-term relationship between income and house prices to better understand affordability.

“Personal circumstances, such as job security and long-term financial planning, also play a significant role. We urge anyone looking to buy a home to consider these long-term factors to ensure a better quality of life after purchasing a home.”