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First time buyers facing a location lottery

First time buyers facing a location lottery

Category: Mortgages

Updated: 03/05/2011
First Published: 03/05/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

First time buyers are facing something of a location lottery, with the cost of a first home fluctuating widely depending on where they buy.

In fact, the cost of taking the first step onto the property ladder can vary by more than £150,000 depending on where you live in the UK.

The figures from Clydesdale and Yorkshire Banks show that the average price of a first home ranges from £100,831 in the North East to £260,261 in London.

It is one of a number of examples of a North/South divide in first time buyer prices.

Yorkshire & Humberside is the second most affordable location for first time buyers in the UK, with an average price of just under £112,396.

The North West and Scotland are also relatively cheap, with average first time buyer homes costing £113,351 and £113,973 respectively.

Buyers in the south will have to dig a little deeper however, with first homes in the South West and the South East setting buyers back an average of £152,668 and £179,463 respectively.

The East of England is also a pricy spot for those looking to set up their first home, with an average pricetag of just over £161,000.

One bright spot is that a home is more affordable for first time buyers in most areas than in previous years.

In the South East the prices are £16,500 lower than in 2007, whereas in London the difference is just £5,403.

"House prices vary significantly throughout the UK and these figures indicate that in some areas there is more than £16,000 difference in the cost of a first home compared to prices in 2007," Steve Reid, retail director for Clydesdale Bank and Yorkshire Banks, said.

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