Affordability for people living in “New Towns” in England and Wales is at its most favourable level since the financial crisis began in 2007, according to new data from Lloyds TSB. Currently, property buyers can expect to pay an average of £182,354 for a home in towns like Corby, Peterlee and Skelmersdale, which were designated and developed following World War II to disperse the population.
Increases in average earnings in these towns along with much more restrained house price growth have helped to boost affordability. The most affordable New Town is Peterlee in County Durhan, with an average house price of £86,427 – 3.2 times gross average annual earnings. The next most affordable are Skelmersdale, Newton Aycliffe and Runcorn.
Suren Thiru, housing economist at Lloyds TSB, commented: “Many New Towns are within easy commuting distance of major commercial centres, where housing is typically more expensive. This is particularly striking for New Towns in the south east, where the average property price is close to half, on average, compared to that in London.”
