Map reveals most and least expensive UK cities for first-time buyers
Map reveals Britain’s most and least expensive cities for first-time buyers to get on the property ladder – with average homes in the cheapest area costing just £105,000
- Rightmove looked at average asking prices for first-time buyer-type homes
- Bradford was cheapest of 60 locations followed by Carlisle and Aberdeen
Bradford in West Yorkshire was today identified as Britain’s cheapest city to get on the property ladder, while London was named as the most expensive location.
Property website Rightmove looked at average asking prices for typical first-time buyer-type homes with a maximum of two bedrooms in 60 major urban locations.
The research made several assumptions, including that first-time buyers had a 10 per cent deposit and would be paying back their mortgage over 25 years.
The average asking price for a typical first-time-buyer-type property in Bradford is £104,643, which could lead to monthly mortgage payments of about £521.
Carlisle in Cumbria was identified as the second cheapest city to be a first-time buyer, with an average monthly mortgage payment of £522.
An aerial view showing Lister’s Mill in Bradford, West Yorkshire, as the city was identified by Rightmove as Britain’s cheapest city to get on the property ladder
People sit outside a cafe in front of City Hall at Centenary Square in Bradford, West Yorkshire
The average asking price for a typical first-time-buyer-type property in Bradford is £104,643
Valley Parade, also known as the University of Bradford Stadium, is Bradford City FC’s ground
Cheapest five UK cities for first-time buyers
Here are the top five cheapest cities for first-time buyers, out of the locations looked at by Rightmove. Figures show the average asking price for a first-time buyer home, the potential monthly mortgage cost, the potential monthly rent and the potential monthly cost of a mortgage versus renting:
Excluding London, St Albans in Hertfordshire was named as the priciest city to get on the ladder, with average monthly mortgage payments calculated at £1,958.
The leafy cathedral city is popular with families and commuters, with fast train links into London.
Within the capital, the average monthly mortgage payment for a first-time buyer was put at £2,533.
Rightmove said its findings suggest paying a monthly first-time buyer mortgage with a 10 per cent deposit is cheaper than renting in around half of the cities it looked.
This rises to two-thirds of cities if buyers are able to raise a bigger deposit, at 15 per cent of the purchase price.
Rightmove’s findings also indicated that first-time buyers in Glasgow could potentially make the biggest monthly savings in cash terms by getting on the ladder, with the average monthly mortgage payment for a first home being £215 per month cheaper than the average rent.
At the other end of the spectrum, first-time buyers in St Albans could potentially end up paying £525 more per month when on the property ladder than they were when they were renting, the research indicated.
2) Carlisle in Cumbria was identified as the second cheapest city to be a first-time buyer by property experts at Rightmove, with an average monthly mortgage payment of £522
3) Aberdeen was in third with a £106,088 average asking price for a first-time buyer home
4) Hull came in fourth place, with a £106,939 average asking price for a first-time buyer home
5) Dundee was fifth, with an average asking price for a first-time buyer home of £111,415
Priciest five UK cities for first-time buyers
Here are the top five priciest cities for first-time buyers, out of the locations looked at by Rightmove. Figures show the average asking price for a first-time buyer home, the potential monthly mortgage cost, the potential monthly rent and the potential monthly cost of a mortgage versus renting:
1. London, £508,879, £2,533, £2,054, £479
2. St Albans, £393,485, £1,958, £1,433, £525
3. Bath, £354,636, £1,765, £1,342, £423
4. Cambridge, £354,181, £1,763, £1,522, £241
5. Oxford, £351,943, £1,752, £1,422, £330
Across Britain, a typical first-time buyer home has a record price tag of £226,399, Rightmove said.
Rightmove’s property expert Tim Bannister said: ‘For those who are able to save up the deposit, it’s still cheaper to pay off a mortgage as a first-time buyer in many areas than pay the equivalent in monthly rent, despite prices reaching a new record at a national level and mortgage rates rising.
‘It highlights how frenetic the rental market has been for a long time now, with many areas continuing to see record rents and fierce competition between tenants for the properties available.
‘It helps to explain why we’re seeing such determination from first-time buyers to continue to get onto the ladder despite the economic headwinds that they face, and why we’re seeing buyers increasingly return to cities while a bigger proportion of renters are looking to move away.’
Also today, Nationwide Building Society’s index revealed house prices fell by 0.1 per cent month-on-month in May following a 0.4 per cent increase in April.
It said property values fell by 3.4 per cent annually in May, which was a bigger decline than a 2.7 per cent annual fall in in April.
The average UK house price in May was £260,736.
Robert Gardner, Nationwide’s chief economist, said: ‘Average prices remain 4 per cent below their August 2022 peak.
In London the average asking price for a first-time buyer home was put by experts at £508,879
St Albans in Hertfordshire was named as the priciest city outside London to get on the ladder, with average monthly mortgage payments in the leafy cathedral city calculated at £1,958
Bath is the third pricest, with an average asking price for a first-time buyer home of £354,636
Cambridge is fourth priciest, with a £354,181 average asking price for a first-time buyer home
Cheaper to pay a mortgage than rent
Here are the top five cities for first-time buyers where it is cheaper to pay a mortgage than rent , out of the locations looked at by Rightmove. Figures show the average asking price for a first-time buyer home, the potential monthly mortgage cost, the potential monthly rent and the potential monthly cost of a mortgage versus renting:
‘Recent Bank of England data had shown some signs of recovery in housing market activity, although the number of mortgages approved for house purchase in March was still around 20 per cent below pre-pandemic levels.’
Yesterday, HM Revenue and Customs (HMRC) figures revealed home sales plunged by a quarter in April compared with the same month a year earlier.
Across the UK, 82,120 transactions were estimated to have taken place in April, marking a 25 per cent drop compared with April 2022.
Residential property sales were also 8 per cent lower in April 2023 than in the previous month.
HMRC’s report said the drop in sales between March and April ‘appears particularly large’.
On Tuesday, Moneyfactscompare.co.uk said several mortgage providers had withdrawn selected fixed mortgage products in recent days and some had pulled their whole fixed-rate range.
Moneyfactscompare.co.uk suggested the volatility is down to the concerns surrounding future interest rate hikes and lenders are reassessing their propositions.
Office for National Statistics (ONS) figures recently showed that inflation slowed to 8.7 per cent in April, although the fall had been expected to be far greater, with experts pencilling in a drop to 8.2 per cent in April.
The Bank of England increased its base rate to 4.5 per cent in May and analysts expect that it will rise further.
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