New Town properties in England and Wales are proving to be the most affordable for UK buyers, according to the latest research from Lloyds TSB.
New Towns, those that were built under various Acts of Parliament to disperse populations, have been found to be amongst the most affordable for property.
Since the start of the financial crisis in 2007 property prices in New Towns have inched up by just 1% on average.
The average price for a home in a New Town is £182,354. This represents 6.1 times the gross annual average earnings (£29,794), falling from 6.3 over the past twelve months and falling well below the national average of 6.9.
One reason cited for the continued affordability presented by New Town properties is the increase of 9% recorded in average salaries across these regions.
While the overall growth in the value of New Town homes has been marginal, other areas have seen more significant price rises. Hatfield has seen an increase of 14%, followed by 8% in Welwyn Garden City and 6% in Harlow and Hemel Hempstead.
Despite these rises, buyers can still snap up bargain New Town properties in areas such as Newtown in Powys (a fall of 14%) and Corby in Northamptonshire (a fall of 12%).
“The combination of strong earnings growth and lower priced property, together with good accessibility to the capital, has helped to support prices in many New Towns in the South East during the economic and financial downturn,” said Suren Thiru, a housing economist at Lloyds TSB.
“In addition, populations in many New Towns in the south east have increased since 2007, which is likely to have added to housing demand.”
Compare credit cards with Propertywide.