Housing affordability for prospective buyers in England and Waless New Towns is at its most favourable since the financial crisis began in 2007, according to research from Lloyds TSB. New Towns are those designated under various Acts of Parliament, initially to disperse the population following World War II.

The average price for a home in a New Town of £182,354 is now 6.1 times gross annual average earnings (£29,794) which represents a fall from 6.3 times over the past year and is below the national average of 6.9.

The improvement in buyer affordability over the past five years has been driven by an increase in average earnings, which across New Towns has risen by an average of 9%. In contrast, average (nominal) house prices in New Towns are, on average, broadly unchanged (+1%) compared with 2007.

Average property values in the south eastern New Towns have been particularly resilient since autumn 2007 with price increases in Hatfield (14%), Welwyn Garden City (8%), Harlow and Hemel Hempstead (both 6%). However outside the south east of England, only Skelmersdale in Lancashire has recorded any price growth (7%), whereas prices have fallen most in Newtown in Powys (14%) and in Corby, Northamptonshire (12%).

Commenting on the research, Suren Thiru, housing economist at Lloyds TSB, said: “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.

"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. In addition, populations in many New Towns in the south east have increased since 2007, which is likely to have added to housing demand."