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 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 may 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 common asking worth for a first-time purchaser property – that’s a house with two bedrooms or fewer – is at the moment £226,399.
We’ve analysed the typical asking worth of a lot of these houses in 60 cities in Nice Britain. And the highest 5 most cost-effective cities for first-time patrons all have a median home worth that’s lower than half the nationwide common.
So which cities have topped our record, and what kind of houses can you discover on the market there proper now? Have a look…
| Cities | Common asking worth for a first-time purchaser kind property (2 bedrooms and fewer) | Common month-to-month mortgage fee* (per 30 days) | Common month-to-month rental fee (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 fee instance primarily based on a 5-year fastened, 90% loan-to-value (LTV) mortgage on the present best-buy fee of 4.45%, 25-year time period mortgage
Supply: Rightmove Home Value Index and Podium knowledge
Most cost-effective 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 houses. The common asking worth for one of these property is £104,643. Meaning a median month-to-month mortgage fee for patrons with a ten% deposit works out at £521 per 30 days, which is simply over £100 cheaper than the typical rental fee.
That is primarily based on the present best-buy mortgage fee (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 houses at the moment on the market in Bradford
Second most cost-effective metropolis for first-time patrons: Carlisle
The cathedral metropolis of Carlisle sits near the border of Scotland. The common 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 houses on the market in Carlisle
Third most cost-effective 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 common asking worth of a first-time purchaser residence right here is £106,088.
Check out among the first-time purchaser houses on the market in Aberdeen
Elevated demand for first-time purchaser houses
In current months, we’ve seen stronger demand for first-time purchaser houses 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 supposing 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 houses could also be due to how aggressive the rental market is in the mean time. There are heaps extra tenants trying to transfer than there are houses out there, 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, slightly than the typical native rental funds.
Our property skilled, Tim Bannister, says: “For individuals 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 stage 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 out there. It helps to elucidate 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 wish 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 may be questioning what the present common mortgage charges are, and what that would imply to your month-to-month funds. You may test the typical UK mortgage charges right here, which we replace weekly.
You can even test how a lot you possibly can borrow with a mortgage utilizing our mortgage calculator. Or, you’ll be able to apply for a Mortgage in Precept on-line: it’s fast, free, and your software received’t affect your credit score rating.
READ MORE: What can you purchase for the typical first-time purchaser asking worth?