The 5 least expensive cities for first-time patrons
Throughout the pandemic, we noticed a lot of home-movers trying to coastal cities and countryside villages, in quest of extra inexperienced areas and a slower-paced life-style. However just lately, we’ve seen an enormous shift in home-movers trying to return to cities.
Should you’re trying to purchase your first house, you could be questioning which cities in Nice Britain have the most affordable common property costs proper now (together with lure of their vibrant social scenes, transport hyperlinks, and metropolitan buzz).
The typical asking worth for a first-time purchaser property – that’s a house with two bedrooms or fewer – is at present £226,399.
We’ve analysed the common asking worth of a lot of these properties in 60 cities in Nice Britain. And the highest 5 least expensive cities for first-time patrons all have a mean home worth that’s lower than half the nationwide common.
So which cities have topped our checklist, and what kind of properties can you discover on the market there proper now? Have a look…
| Cities | Common asking worth for a first-time purchaser sort property (2 bedrooms and fewer) | Common month-to-month mortgage cost* (per 30 days) | Common month-to-month rental cost (per 30 days) | Mortgage versus Hire |
|---|---|---|---|---|
| Bradford | £104,643 | £521 | £623 | -£102 |
| Carlisle | £104,784 | £522 | £556 | -£34 |
| Aberdeen | £106,088 | £528 | £718 | -£190 |
| Hull | £106,939 | £532 | £595 | -£63 |
| Dundee | £111,415 | £555 | £731 | -£176 |
*Mortgage cost instance primarily based on a 5-year mounted, 90% loan-to-value (LTV) mortgage on the present best-buy charge of 4.45%, 25-year time period mortgage
Supply: Rightmove Home Worth Index and Podium knowledge
Least expensive metropolis for first-time patrons: Bradford
Named the upcoming Metropolis of Tradition for 2025, Bradford in West Yorkshire is the most affordable metropolis for first-time purchaser properties. The typical asking worth for any such property is £104,643. Meaning a mean month-to-month mortgage cost for patrons with a ten% deposit works out at £521 per 30 days, which is simply over £100 cheaper than the common rental cost.
That is primarily based on the present best-buy mortgage charge (4.45%) for a 5-year, fixed-rate mortgage at 90% loan-to-value (over a 25-year time period).
Check out among the first-time purchaser properties at present on the market in Bradford
Second least expensive metropolis for first-time patrons: Carlisle
The cathedral metropolis of Carlisle sits near the border of Scotland. The typical asking worth of a first-time purchaser home worth of £104,784, and common first-time purchaser month-to-month mortgage funds of £522.
Check out among the first-time purchaser properties on the market in Carlisle
Third least expensive metropolis for first-time patrons: Aberdeen
Scotland’s third most populated metropolis after Glasgow and Edinburgh, Aberdeen is a coastal metropolis recognized for its stone-grey structure, and is near the Cairngorms Nationwide Park. The typical asking worth of a first-time purchaser house right here is £106,088.
Check out among the first-time purchaser properties on the market in Aberdeen
Elevated demand for first-time purchaser properties
In latest months, we’ve seen stronger demand for first-time purchaser properties when in comparison with different forms of properties. That is up 6% on the degrees we noticed throughout the identical interval in 2019, earlier than the pandemic started. And that is even though the property market is extra settled now than it was in the course of the extraordinarily busy pandemic years.
This elevated demand for first-time purchaser properties could also be due to how aggressive the rental market is for the time being. There are tons extra tenants trying to transfer than there are properties accessible, pushing up rents to document highs. This has led to it changing into cheaper to cowl month-to-month mortgage funds when shopping for a house in some cities, somewhat than the common native rental funds.
Our property knowledgeable, Tim Bannister, says: “For many who are capable of save up the deposit, it’s nonetheless cheaper to repay a mortgage as a first-time purchaser in lots of areas than pay the equal in month-to-month hire, regardless of costs reaching a brand new document at a nationwide degree and mortgage charges rising.”
It highlights how frenetic the rental market has been for a very long time now, with many areas persevering with to see document rents and fierce competitors between tenants for the properties accessible. It helps to clarify why we’re seeing such willpower from first-time patrons to proceed to get onto the ladder, regardless of the broader financial pressures that they face. And it additionally explains why we’re seeing patrons more and more return to cities whereas a much bigger proportion of renters need to transfer away,” he provides.
What’s taking place with mortgage charges?
Should you’re shopping for a house with a mortgage, you could be questioning what the present common mortgage charges are, and what that might imply to your month-to-month funds. You may verify the common UK mortgage charges right here, which we replace weekly.
You can even verify how a lot you might borrow with a mortgage utilizing our mortgage calculator. Or, you may apply for a Mortgage in Precept on-line: it’s fast, free, and your software received’t impression your credit score rating.
READ MORE: What can you purchase for the common first-time purchaser asking worth?
