The 5 most cost-effective cities for first-time consumers
4 min read
Through the pandemic, we noticed numerous home-movers trying to coastal cities and countryside villages, in quest of extra inexperienced areas and a slower-paced way of life. However not too long ago, we’ve seen a giant shift in home-movers trying to return to cities.
In the event you’re trying to purchase your first residence, you is perhaps 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 value for a first-time purchaser property – that’s a house with two bedrooms or fewer – is presently £226,399.
We’ve analysed the typical asking value of some of these properties in 60 cities in Nice Britain. And the highest 5 most cost-effective cities for first-time consumers all have a mean home value that’s lower than half the nationwide common.
So which cities have topped our listing, and what kind of properties can you discover on the market there proper now? Have a look…
| Cities | Common asking value 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 fastened, 90% loan-to-value (LTV) mortgage on the present best-buy price of 4.45%, 25-year time period mortgage
Supply: Rightmove Home Value Index and Podium knowledge
Most cost-effective metropolis for first-time consumers: 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 value for any such property is £104,643. Meaning a mean month-to-month mortgage cost for consumers with a ten% deposit works out at £521 per 30 days, which is simply over £100 cheaper than the typical rental cost.
That is primarily based on the present best-buy mortgage price (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 presently on the market in Bradford
Second most cost-effective metropolis for first-time consumers: Carlisle
The cathedral metropolis of Carlisle sits near the border of Scotland. The typical asking value of a first-time purchaser home value 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 most cost-effective metropolis for first-time consumers: 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 value of a first-time purchaser residence 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 sorts 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 through 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 report highs. This has led to it changing into cheaper to cowl month-to-month mortgage funds when shopping for a house in some cities, relatively than the typical native rental funds.
Our property professional, 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 report 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 report rents and fierce competitors between tenants for the properties accessible. It helps to clarify why we’re seeing such willpower from first-time consumers to proceed to get onto the ladder, regardless of the broader financial pressures that they face. And it additionally explains why we’re seeing consumers 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?
In the event you’re shopping for a house with a mortgage, you is perhaps questioning what the present common mortgage charges are, and what that would imply in your month-to-month funds. You possibly can verify the typical UK mortgage charges right here, which we replace weekly.
You can even verify how a lot you can borrow with a mortgage utilizing our mortgage calculator. Or, you possibly can apply for a Mortgage in Precept on-line: it’s fast, free, and your utility received’t impression your credit score rating.
READ MORE: What can you purchase for the typical first-time purchaser asking value?
