How affordable is your town or city? Best and worst locations for home buyers revealed

Aberdeen, Durham and Hartlepool are the three cheapest urban hotspots to buy a home either solo or as a couple, data shows.

At the other end of the spectrum, single buyers in London would need to borrow nearly 17 times their annual salary to buy a home and get a mortgage paid off.

A report has looked at average house prices, based on Land Registry figures, and median annual salaries from the Office for National Statistics across 90 towns and cities.

The house price and median annual salary data was used to work out the average 10 per cent deposit and remaining average mortgage balance by town or city. This revealed the annual income multiple required to pay the mortgage balance off as a solo buyer or joint buyers.

A slew of northern towns and cities had the lowest mortgage-to-salary ratios, making them the most affordable places for buyers, the report's compiler UK Debt Expert said.

Aberdeen was the number one most affordable location. With an average annual salary of £31,910 and house prices averaging £137,487, couples need to borrow just 1.94 times their salaries, while single buyers face a modest 3.88 times ratio.

Located just over two hours from Edinburgh and Glasgow, Aberdeen offers an attractive option for buyers looking to get on the property ladder, with house prices well below the national average, making mortgages more attainable.

Durham scored well for affordability, with average property prices coming in at £117,119 and an average annual pay packet of around £28,411. Solo buyers only need 4.12 times their annual salary to buy a home, while for couples it is 2.06 times.

Hartlepool followed closely behind in affordability, with couples needing 2.1 times the average salary of £27,504.

'These northern locations offer hope, particularly given that one-third of young people fear they may never be able to get on the property ladder', the report said.

Sunderland, Middlesbrough, Dundee and Blackpool also fared well in the affordability rankings.

In Blackpool, the average annual salary is £26,707, while the average property price is around £136,867. Single buyers need 4.61 times their salary to buy a home in the town, while for couples it is 2.31 times.

London came in as the least affordable place to buy a home.

With average house prices in the capital at around £683,700, a solo buyer would need nearly 17 times their annual income to buy a property in the city. Average annual salaries in the city are higher than most, at £40,500.

St Albans was the second least affordable location to buy a property. In this town, couples typically need 6.26 times their joint annual income to buy a home. For single buyers, it is much worse, at 12.52 times. Average property prices come in at £530,055 and average annual salaries are just over £42,000.

Guildford was the third most expensive location to buy a home. In the Surrey town, where average property prices are £461,627 and the average salary is £37,564, a solo buyer would need 12.29 times their salary to buy a home.

Bath, Oxford, Brighton and Cambridge all made it to the top 10 least affordable towns or cities to buy in.

Across Britain, the average house price is £292,924. According to UK Debt Expert, based on a 10 per cent deposit, the remaining mortgage balance represents 8.34 times the median UK salary for solo buyers and 4.17 times a joint annual income for couples.

The report said: 'Despite the Bank of England cutting interest rates to 4.5 per cent, a nationwide affordability gap persists.'

Maxine McCreadie, a personal finance expert at UK Debt Expert, said: 'For aspiring homeowners in the UK, navigating the housing market has never been more challenging.

'With house prices far outpacing wage growth and higher mortgage rates, the dream of owning a home feels increasingly out of reach for many.

'But all hope is not lost. The research shows that even in these challenging times opportunities remain, particularly in the north of the UK or maybe taking the time to save a larger deposit for the south.

'Planning ahead can be useful whether you're in a couple or buying alone and remembering that their are options available.

'Before starting the buying process, it's crucial to have a clear picture of your finances. You can start by reviewing your debts, setting a realistic budget and checking your credit report. Also factor in extra costs like legal fees, surveys and stamp duty, which can add up quickly.'

The Financial Conduct Authority is investigating ways to simplify mortgage rules, many of which were ushered in the aftermath of the 2008 global financial crisis.

Lenders are subject to a rule which means no more than 15 per cent of their mortgage book can be comprised of loans above 4.5 times the borrower's income - but that could change under the plans being discussed.

At present, stringent rules mean lenders have to be sure people can repay mortgages, testing them for higher rates of interest.

In the future, strict rules on mortgages could be loosened to enable more people to get on or move up the property ladder.

Last month, Nikhil Rathi, the FCA's chief executive, said in a letter to Keir Starmer and Rachel Reeves: 'We will begin simplifying responsible lending and advice rules for mortgages, supporting home ownership and opening a discussion on the balance between access to lending and levels of defaults.'

Richard Donnell, executive director of research at Zoopla, said: 'The big question is whether current rules go too far but there is a risk for consumers and the government in how far this might go.'

McCreadie, of UK Debt Expert, told This is Money: 'While the potential loosening of mortgage lending rules is a positive step for single buyers, who often have fewer options, need to save for longer, and tend to borrow more due to relying on one income - those taking on higher mortgages must ensure their finances are secure to avoid future financial risks.'