Mortgage experts reveal best spots in the UK for first-time buyers to purchase
Mortgage experts have shed light on the best locations for first-time homebuyers.
According to recent research from Halifax, a significant 61% of first-time buyers are willing to relocate to different parts of the country in order to secure their first property.
The study reveals that house prices for first-time buyers have almost doubled (increasing by 94%) over the past decade. Furthermore, the average age of a first-time buyer has risen from 30 to 32 within the same period, highlighting the challenges faced by this demographic.
Despite these hurdles, the aspiration among young people to own their first property remains high at 87%, with a third (33%) eager to get on the housing ladder as soon as possible.
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In response to the cost-of-living crisis, nearly half (44%) of prospective first-time buyers are now considering locations they wouldn't have previously thought of. The average price for a first-time buyer's house varies greatly across the country, ranging from £112,112 in Inverclyde to a staggering £682,981 in Westminster. Consequently, many young people (40%) are actively seeking more affordable, emerging areas to move to.
Over four in ten (41%) respondents stated that the location of their first home was more important than the property itself. The research also highlighted the top priorities for first-time buyers when choosing where to buy.
Despite 'proximity to family and friends' ranking second on the list of top priorities, the fact that "house price" tops the list by a significant margin highlights why 61% of prospective first-time buyers are now willing to broaden their search and move further afield to secure their first home.
Halifax has unveiled a First-Time Buyer Report, which merges its own house price data with a survey of 3,000 individuals aged between 18 and 34 who have yet to purchase a property. The aim is to gain a deeper understanding of the challenges facing first-time buyers in 2023.
The report also highlights emerging areas around the UK and provides advice on how people can embark on their homebuying journey.
With affordability being the top priority, Halifax has pinpointed emerging areas with lower average purchase prices compared to the surrounding region. These areas have been cross-referenced with respondents' priorities, including factors such as crime rates, transport links to major cities, access to quality schools or other educational facilities, proximity to green spaces, ultrafast broadband availability, and investment in local regeneration.
Promising areas for first-time buyers
Halifax has compiled a list of promising areas for first-time homebuyers. The list includes the average purchase price for first-time buyers in each area, as well as the percentage difference between that and the average price in the wider location.
However, Halifax emphasised that it has not ranked these locations from one to 10, acknowledging that individual buyers will have different priorities when choosing a location:
- Kingston upon Hull, North East England, £156,509, minus 23%
- Middlesbrough, North East England, £156,761, minus 11%
- Neath Port Talbot, Wales, £158,702, minus 20%
- Derry City and Strabane, Northern Ireland, £160,636, minus 8%
- Falkirk, Scotland, £165,511, minus 12%
- Blackburn with Darwen, North West England, £168,895, minus 21%
- Aberdeen City, Scotland, £173,061, minus 8%
- Telford and Wrekin, Midlands, £213,741, minus 10%
- Ipswich, Eastern England, £249,338, minus 25%
- Eastbourne, South East England, £253,744, minus 29%
Kim Kinnaird, Mortgages Director at Halifax, stated: "Despite fluctuating house prices, the desire to buy a first home isn't going away, with almost nine in ten young people keen to get on the property ladder.
"There's an appetite from under 35s to consider more affordable areas further afield, so we've identified up-and-coming locations that prospective first-time buyers might do well to look into. These are based on relatively low average house prices, alongside other positives such as access to green spaces, easy commutes and safe neighbourhoods.
"Buying a home is daunting, especially if it's your first time doing so. That's why we've launched Halifax's First-Time Buyer Report, which is full of information and tips to support those embarking on their home-buying journey."
Purchase pause
Further findings from Halifax's research showed that various challenges in the housing market, including increasing mortgage rates, have affected many first-time buyers. As a result, four in ten (41%) are pushing back their house purchase plans by four years on average.
Over seven in ten (71%) say they are prioritising other purchases over a house 31% say that they have deprioritised buying a home in favour of saving to go travelling, while 30% say finances for a car are now a bigger focus.
Decision to downsize
While decent square footage is on most homebuyers' list of 'must-haves', almost half (49%) of those looking for a first home said they've downsized their expectations. Over four in ten (46%) are now willing to consider homes up to a quarter smaller than their ideal size, while more than half (55%) would reassess the type of property they are willing to buy.
Getting support
A recent survey revealed that 30% of participants confessed to not understanding the home buying process. However, Halifax experts have provided some valuable advice for those embarking on their homebuying journey:
1. Consider more than just the house price: Prospective buyers should take into account various factors such as community atmosphere and availability of green spaces when selecting a home. The Halifax location finder is an excellent online tool for exploring new areas.
2. Visit a Halifax Home Hub: These are dedicated spaces where individuals can receive guidance and formulate a plan to progress on the property ladder.
3. Utilise a mortgage calculator: Halifax provides a free First Time Buyer Mortgage Calculator to assist those beginning their homebuying journey in understanding potential costs.
For further information about the home-buying process, the Halifax First-Time Buyer Report can be accessed at www.halifax.co.uk/ftb2023.
* This article was crafted with the help of an AI tool, which speeds up Daily Star's editorial research. An editor reviewed this content before it was published. You can report any errors to [email protected]
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