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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
Getting onto the property ladder remains a struggle for many first-time buyers, especially following increases to mortgage rates since the start of spring.
But where you buy can make a huge difference. New research from Lloyds reveals the cheapest areas for first-time buyers across the UK, with some locations averaging less than half the price of homes in London.
Here, Which? reveals the most affordable places to buy, what monthly mortgage repayments could cost and the extra expenses first-time buyers often overlook.
The most affordable place for first-time buyers in the UK is East Ayrshire in Scotland, according to research from Lloyds Bank. The largest town in the district is Kilmarnock.
Situated within easy reach of Glasgow and Scotland’s west coast, the area combines rural and urban living while remaining one of the cheapest places in the UK to buy a first home.
The most affordable area in Wales is Merthyr Tydfil (pictured above) on the edge of Bannau Brycheiniog National Park, formerly known as the Brecon Beacons. It's roughly a 40-minute drive from Cardiff.
The table shows the 10 most affordable areas for first-time buyers in the UK. It's dominated by areas in Scotland, making up half of the top 10.
| East Ayrshire | Scotland | £147,353 |
| Inverclyde | Scotland | £149,929 |
| Blackpool | North West | £150,780 |
| Kingston upon Hull | Yorkshire and The Humber | £151,171 |
| Na h-Eileanan Siar | Scotland | £155,300 |
| Hyndburn | North West | £155,911 |
| Clackmannanshire | Scotland | £156,041 |
| Merthyr Tydfil | Wales | £156,498 |
| South Tyneside | North East | £157,551 |
| West Dunbartonshire | Scotland | £159,437 |
Source: Lloyds Bank
The research shows a stark difference in property costs across the UK. Many of the most affordable areas in the table have average prices less than half the cost of buying in the most affordable area in London.
Blackpool is narrowly the most affordable area in England, beating Kingston upon Hull by just a few hundred pounds.
Hull remains one of the cheapest cities for buyers in Yorkshire and the Humber, while Great Yarmouth ranks as the most affordable area in the East of England.
Meanwhile, Barking and Dagenham remains the cheapest area for first-time buyers in London, with an average property price of £363,748.
| East Midlands | Bolsover | £191,564 |
| East of England | Great Yarmouth | £236,447 |
| London | Barking and Dagenham | £363,748 |
| North East | South Tyneside | £157,551 |
| North West | Blackpool | £150,780 |
| Northern Ireland | Mid and East Antrim | £175,308 |
| Scotland | East Ayrshire | £147,353 |
| South East | Gosport | £228,617 |
| South West | Plymouth | £216,166 |
| Wales | Merthyr Tydfil | £156,498 |
| West Midlands | Stoke-on-Trent | £171,569 |
| Yorkshire and The Humber | Kingston upon Hull | £151,171 |
Source: Lloyds Bank
Buying a home is likely to be the largest purchase of your life, and it can be difficult to translate the purchase cost of a property into what your monthly mortgage repayments will actually be.
For many first-time buyers, monthly repayments are just as important as the property price itself when deciding what is affordable.
To illustrate how the size of your loan affects the cost of monthly repayments, we have calculated it for six loan amounts.
In our calculations, we have used the best rates available on 21 May for the most popular mortgage product among first-time buyers – a five-year fixed-rate deal.
We have calculated this for three loan-to-value (LTV) ratios, as this will alter the best rate available to you. Typically, the lower the LTV ratio, the lower the rate. Although once your LTV falls below 60%, rates tend to be the same.
| Loan amount | LTV 60% or less | LTV 75% | LTV 90% |
|---|---|---|---|
| £150,000 | £832 | £841 | £863 |
| £200,000 | £1,109 | £1,121 | £1,151 |
| £250,000 | £1,387 | £1,401 | £1,438 |
| £300,000 | £1,664 | £1,681 | £1,726 |
| £400,000 | £2,219 | £2,242 | £2,301 |
| £500,000 | £2,773 | £2,802 | £2,877 |
Rates for figures sourced from Moneyfacts on 21 May. Monthly repayments rounded to the nearest £. The figures in the table assume a 25-year mortgage term.
Find the right mortgage using the fee-free service provided by L&C Mortgages
Compare mortgagesIf you click on the link and complete a mortgage with L&C Mortgages, L&C is paid a commission by the lender and will share part of this fee with Which? Ltd helping fund our not-for-profit mission. We do not allow this relationship to affect our editorial independence. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The typical cost of moving into your first home comes to £2,315, according to the latest data from Reallymoving.
It spotlights conveyancing fees of almost £1,500, house surveys costing almost £500 and removal vans costing more than £400 as the main services the average first-time buyer needs to budget for.
Our previous research shows buyers also need to make sure other costs are included in moving budgets.
We found that decorating a new space is the most common unexpected moving cost. Buying new appliances and purchasing curtains or blinds were also among the top unexpected expenses.
Another common unexpected cost is stamp duty. The average UK first-time buyer doesn't pay any.
In England and Northern Ireland, first-time buyers only start paying stamp duty when purchasing a property worth more than £300,000.
First-time buyers purchasing homes between £300,001 and £500,000 pay a reduced rate compared with home movers. However, if you purchase a property worth more than £500,000, you lose first-time buyer stamp duty relief entirely.
For example, if you are purchasing a home for £490,000 you would owe £9,500 in stamp duty. If the property costs £510,000, the amount of tax rises to £15,500.
Scotland and Wales use different property taxes. In Scotland, buyers pay Land and Buildings Transaction Tax (LBTT), while Wales uses Land Transaction Tax (LTT).
In Scotland, first-time buyers start paying LBTT when purchasing a property worth more than £175,000.
In Wales, there's no separate first-time buyer relief, so first-time buyers pay the same Land Transaction Tax (LTT) rates as home movers. Buyers only start paying LTT on properties worth more than £225,000.
To understand more about the thresholds, use our stamp duty calculator.
Along with the most affordable areas for first-time buyers, Lloyds has also calculated the areas with the youngest first-time buyers.
The average age of a first-time buyer in the UK is now 32, two years older than a decade ago, but unchanged over the past year.
However, buyers in some parts of the country are getting onto the property ladder much earlier than others, particularly in more affordable areas outside major cities.
The area with the youngest first-time buyers is the Ribble Valley, according to Lloyds. The largest town in this Lancashire district is Clitheroe, on the edge of the Forest of Bowland National Landscape. In less than 40 minutes by car, you can get to Preston, Blackburn and Burnley.
| Pendle | North West | 27.9 | £188,136 |
| Rutland | East Midlands | 28.1 | £281,130 |
| Cannock Chase | West Midlands | 28.3 | £213,399 |
| North Norfolk | Eastern England | 28.4 | £242,318 |
| Staffordshire Moorlands | West Midlands | 28.5 | £219,616 |
| Chorley | North West | 28.7 | £221,232 |
| Eastern England | Mid Suffolk | 28.7 | £289,372 |
| Westmorland and Furness | North West | 28.8 | £212,848 |
Source: Lloyds
