The UK's most and least expensive postcodes

Whether you’re buying your first home or looking to relocate, the question of affordability is always at the forefront of decision-making.  

With this in mind, Money.co.uk have created a ranking of the most, and least, affordable places to buy a home in the UK using ONS data. They also provide their top tips on securing a mortgage. 

The findings revealed that across England, employees paid an average of 7.8 times their annual salary, whereas in Wales it was only 5.9 times, on average.

The Most Affordable Regions: 

• The North East is the most affordable place to buy a house. On average, a property will cost just 5.01 times the area's average annual wage 
• Second is the North West, with properties costing 5.72 times the area's average wage 
• Yorkshire and the Humber ranks as third most affordable, with a property costing approximately 5.83 times their average yearly salary 

The Most Affordable Postcodes: 

Next, Money.co.uk used data to find the average price paid in each LSOA (lower-layer super output area) in England and Wales to find which postcodes contain the cheapest areas to live.  

They found the five cheapest postcodes to live in are all in the North East, and can reveal that the cheapest postcode is in County Durham: 

The Least Affordable Regions: 

• Unsurprisingly, London is the least affordable place to buy a house, with full-time workers having to pay roughly 12.52 times the area's average annual wage for a property 
• Second is the South East, with houses costing around 9.57 times the area's average annual wage 
• The East of England ranks third least affordable, with residents paying 8.86 times their annual salary 

The Least Affordable Postcodes: 

The five most expensive LSOAs within postcodes are all in London, and Money.co.uk found that the most expensive postcode to live in is in Westminster: 

Expert Tips for Securing a Mortgage: 

1. Keep on top of your credit score - Any lender will need to look at your credit score so make sure it’s up-to-date and you’re regularly checking it for inaccuracies or errors. 
2. Register to vote - It’s free to be on the electoral roll and lenders will check it to verify your ID. 
3. Don’t apply for too much credit before your application - Every time you apply for credit a mark is left on your credit score. Try not to do this before applying for a mortgage as it can negatively affect your chances. 
4. Never miss a payment - Missing a payment - be it a credit card or a personal loan - will leave a mark on your credit score that your mortgage provider can see.  
5. Get your spending in order - A mortgage provider will usually look at your regular spending so keep an eye on where your money is going and try to rein in any unnecessary spending. 

For more information on affordability, including available schemes to help with buying a home, see Money.co.uk’s affordability guide here: https://www.money.co.uk/mortgages/guides/most-affordable-places-to-buy-home 

For more information on selling prices and the housing market, see Money.co.uk’s house price guide here: https://www.money.co.uk/mortgages/guides/cheapest-most-expensive-houses-sold 

If this is of interest, or you have any questions, please don’t hesitate to get in touch.