More than half of properties in the UK are in areas that are affordable for first-time buyers, according to new research, with Blackpool, Hull and Lincoln among the ‘affordable hotspots.’
The average home in the UK costs £282,713, yet first-time buyer household incomes average £48,289, research by Post Office Money found, meaning the average house price is 5.85 times the average first-time buyer income.
However, the good news is there are still many affordable locations across the country for those looking to get onto the property ladder, according to the annual study, which claims that 56% of UK properties are affordable for first-time buyers.
The most affordable place to buy is Blackpool, where the average house price is £110,000, the Post Office found through its analysis of Office for National Statistics data. The average first-time buyer income in Blackpool is £40,053, meaning the average house price is two and a half times this.
Lincoln and Hull, where house prices stand at an average of £149,000 and £115,000 respectively, are also considered affordable, along with Knowsley, Stoke-on-Trent and Southampton.
Many areas still out of reach for first-time buyers
Unsurprisingly, most of the places where first-time buyers will struggle to buy are in the south east. Oxford is the least affordable commuter location, Post Office Money found, with average property prices at £392,500 and with no properties in this area considered affordable to first-time buyers.
However, some areas in the south east, such as Reading, have seen an increase in the number of homes deemed affordable, due to rising wages and lower prices. Locations which are near to Manchester – Wigan and Oldham – are among the UK’s most affordable areas for first-time buyer commuters, which may be due to an increase in the number of properties available and affordable home schemes in both areas.
“While we may be seeing the first indications of a ‘buyer’s market’, we still know that saving for and ultimately purchasing a home is a difficult process,” said Ross Hunter, spokesman for Post Office Money. “Finding which areas are most affordable in cities local to you is key to making a personal plan of action.”
‘Affordable hotspots’ for first-time buyers revealed