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Derin Clark

Derin Clark

Online Reporter
Published: 06/09/2019

More than half (56%) of properties across the UK are in areas that are affordable for first-time buyers, analysis by Post Office Money reveals.

Post Office Money analysed data from the Office of National Statistics (ONS) and found that, although house price growth has stagnated in the last year, the average house price remains at 5.85 times the average first-time buyer income. Despite this, there are still many affordable locations across the country for first-time buyers, with Blackpool revealed as the most affordable place to purchase a first home.

The average house price in Blackpool is priced at £110,000, while the average first-time buyer income in the city is £40,053. The next most affordable location is Lincoln, where the average house price is £149,000 and the average first-time buyer income is £40,913. Third, with an average house price of £115,000 is Kingston upon Hull, where the average first-time buyer income is £38,665.

It will come as no surprise that the least affordable areas for first-time buyers tend to be commuter hubs in the south, with a number including Oxford, Cambridge and Surrey having no affordable areas for first-time buyers. Of the 84 locations analysed the three least affordable places for first-time buyers were Warwick, where the average house price is £305,000 and the average first-time buyer income is £41,796. This is followed by Guildford, where the average house price is £450,000 and the average income £57,557 and then Woking with an average house price £390,000 and an average income £57,557.

First-time buyer mortgages

First-time buyers can take advantage of the highly competitive mortgage market at the moment, which has resulted in some low rates for these buyers. Post Office Money, for example, offers first-time buyers a rate of 2.80% fixed until 30 September 2021 available for those with a 95% loan-to-value and it has no product fees. The lowest rate currently available in the chart is from Newcastle Building Society, offering 2.59% fixed until 31 October 2021, which charges £498 in product fees.

Ross Hunter, from Post Office Money, said: “While we have seen house price growth slow in the last year, properties can still seem particularly unaffordable for first-time buyers. We know that saving for a deposit remains the most significant hurdle for young buyers to overcome in order to achieve their homeownership aspirations. It can take years of dedicated effort in order to gather the necessary funds. There are a number of ways that prospective homeowners can reduce their time spent saving, such as taking on a fixer-upper property or looking in a cheaper area close to where they might have previously considered. Post Office also offers two innovative products, Family Link and First Start, which can enable buyers to get on to the ladder with a lower deposit.”


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