If you were to glance at the top spots on a first-time buyer’s house-hunting wishlist, you may expect to find energetic London or trendy Edinburgh.
But couples buying their starter home should instead prioritise other Scottish and northern cities, analysis reveals.
Between soaring house prices, which now average £270,000 across the UK, and stubborn mortgage rates, it is an increasingly difficult market for young buyers.
But there are still a handful of affordable but lively places that should be at the top of every first-time buyer’s list, according to an analysis of cities and towns across the UK shared with The Mail on Sunday by Aldermore Bank.
Its experts analysed ten vital metrics for each location, broken down into property and lifestyle pillars. The property section includes factors such as average sale price for a first-time buyer and the average deposit as a proportion of annual income.
Meanwhile lifestyle focuses on metrics such as average commuting time, life satisfaction, and the number of restaurants and pubs per 10,000 people.
Jon Cooper, director of mortgages at Aldermore, says: ‘There are still pockets of opportunity for those ready to take their first step on to the property ladder.’
Here we reveal the most desirable spots for starter homes.
The Park Circus district in Glasgow, a city where the average house price for a first-time buyer stands at £168,828
Why Glasgow is the best value for money
The Scottish city is the most desirable place for a first-time buyer as it combines low property prices with a lively and energetic lifestyle – perfect for those snapping up a starter home.
The average house price for a first-time buyer is £168,828. The average deposit is also low at £31,856 – just 0.8 times the average annual income.
Barry Chuwen, director of Glasgow-based MQ Estates, says: ‘It offers more value for your money. The infrastructure is good. There are cafes, bars and restaurants right on your doorstep – you don’t need to travel into the city centre.’
Chuwen says a first-time buyer typically spends anywhere from £125,000, which will buy a one- or two-bedroom flat, to £250,000, which stretches to a three-bedroom house in some areas.
Meanwhile, Scottish capital Edinburgh sits at number 12 on account of its high prices for first-time buyers, of £245,116.
Northern highlights
Northern cities triumph in these rankings for young buyers. Liverpool takes the silver spot for desirability due to its strong property market and energetic lifestyle. First-time buyers make up 69 per cent of sales and a deposit is only 0.7 times the average annual income. There are plenty of pubs and restaurants, too.
Michael Le Brocq, director of Liverpool-based Atlas estate agents, says: ‘Affordability plays a significant role. We’ve also seen the impact of regeneration and investment across the city.’
Most first-time buyers are snapping up two-bed flats or terraced homes, according to the company.
Georgian terraced houses found in Canning Street, Liverpool. The average price for a home in the city for a first-time buyer is £161,525
The average property price for a first-time buyer – £161,525 – could buy a one- or two-bedroom flat. Newcastle, Manchester and Hull also make the top ten.
Jonathan Handford, of estate agency Fine and Country, says momentum is building for regional cities, adding: ‘Manchester, Leeds, Sheffield, Liverpool, Birmingham and Nottingham stand out because they offer a combination of affordability, strong local economies and large-scale regeneration.’
Sheffield’s rising star
Claire Millward, valuer at Sheffield-based Haus Homes, says the city’s high retention rate of university students after graduating is driving its rapidly rising popularity among first-time buyers.
She says: ‘You can get a two-bedroom for £200,000 while a three-bedroom is £240,000.’
Bypass the South East
Commuter towns in reach of the M25 get nowhere near the first-time buyer leaderboard.
For example, Basildon may be well placed for young professionals working in London, but the average first-time buyer must fork out 1.6 times their average annual pay on a deposit.
Coastal spots such as Brighton and Bournemouth are also deemed undesirable for starter homes.
The capital itself has seen improved affordability – young buyers now only need to shell out 2.8 times annual income for a deposit, instead of the 3.3 times they needed this time last year.
The next 30 towns and cities on the first-time buyers’ list are: 21. Milton Keynes (average price £275,701); 22. Wolverhampton (£186,196); 23. Reading (£304,380); 24. Southampton (£210,394); 25. Barnsley (£146,039); 26. Bradford (£159,199); 27. Plymouth (£193,612); 28. Telford (£187,941); 29. Cardiff (£231,420); 30. Leicester (£209,559); 31. Wakefield (£171,520); 32. Birmingham (£206,808); 33. Bristol (£304,941); 34. Oxford (£413,677); 35. Warrington (£208,400); 36. Newport (£189,400); 37. Northampton (£240,909); 38. Swindon (£222,058); 39. Belfast (£183,847); 40. Luton (£262,692); 41. York (£263,130); 42. London (£480,161); 43. Brighton (£348,402); 44. Cambridge (£421,331); 45. Peterborough (£199,850); 46. Bournemouth (£260,956); 47. Chelmsford (£306,590); 48. Southend (£258,731); 49. Basildon (£303,915); 50. Maidstone (£293,653)
