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The most affordable places for first-time buyers in the UK

With average house prices growth having increased by 48% since 2005, compared with an increase to the average first-time buyer income of only 37% over the same period, the UK housing market has remained a challenging environment for first-time buyers in particular 1. Despite this, the first-time buyer market has been busy with borrowing 26% higher in June 2017 on the previous month and 9% higher than June 2016 2.

In a study by Post Office Money, 70% of first-time buyers chose to buy a home an average of 26 minutes from their original preferred location, while 16% didn’t have to adjust their expectations at all, other successful first-time buyers ended up being flexible towards having a suitable garden or availability of car parking spaces 2.

The research by Post Office Money calculated the affordability of housing by seeing what proportion of each geographical area had a median house price lower than 4.5 times the average income of first-time buyers in that region.

The research showed that the most affordable area in the UK for first-time buyers is Southampton, where the average property price is £199,074 and 98% of properties are accessible to first-time buyers 3. Norwich and Nottingham are also among the UK’s affordable hotspots at second and third place, with 93% and 89% of properties in these areas being achievable to first-time buyers, as illustrated in the table below.

Although London has the highest average house prices at £534,000, it was found to be the third least affordable city. Brighton, a long-time favourite for Londoners seeking a more affordable city that they can commute from and a place by the seaside, was found to be the least affordable city for first-time buyers with average house prices of £352,000 and average annual incomes at £57,000 4.

Sources

  1. http://corporate.postoffice.co.uk/our-media-centre#/pressreleases/will-travel-first-time-buyers-ftbs-widen-their-horizons-to-seek-out-their-dream-home-2091115
  2. http://www.financialreporter.co.uk/mortgages/first-time-buyer-market-soars-26-in-june-uk-finance.html
  3. http://www.telegraph.co.uk/property/uk/affordable-cities-uk-first-time-buyers/
  4. http://www.homesandproperty.co.uk/property-news/buying/first-time-buyers/southampton-norwich-and-nottingham-named-most-affordable-cities-for-firsttime-buyer-homes-a112621.html#gallery

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2017-08-17T15:17:24+00:00