A new study has revealed the best and worst UK regions for first-time buyers based on house affordability and earning potential.
The study, conducted by broker L&C Mortgages, analysed GOV.UK data on median earnings and average first-time buyer house prices per region, revealing the UK areas with the best house price-to-income ratio.
Ranking in first place is East and North Ayrshire, which offers first-time buyers the opportunity to live in an idyllic Scottish town for an affordable price.
The median monthly salary for this area is £2,268, which is only just lower than the UK average of £2,322. Additionally, the area shines with a remarkably low median first-time buyer house price of just £103,453, the lowest in the UK.
Ayrshire’s reasonable salary offerings and impressively low first-time buyer house prices give it a ratio of 3.8 – making it the most affordable UK area to buy a house.
North Lanarkshire ranked in second place, presenting another promising option for first-time buyers. With a median monthly salary of £2,355 and a median first-time buyer house price of £112,166, the area boasts a ratio of 3.97, making it an attractive choice for those seeking affordability without compromising on quality.
The Scottish area has the third lowest first-time buyer average house price, combined with median salary expectations that are just £33 a month higher than the UK annual average.
Ranking as the third best area for first-time buyers is Durham County Council, with a median monthly salary of £2,229 and a median first-time buyer house price of £111,454, resulting in a favourable ratio of 4.17.
Placing in joint fourth place is South Lanarkshire and the regions of Inverclyde, East Renfrewshire, and Renfrewshire, both achieving a ratio of 4.39.
South Lanarkshire offers an average monthly salary of £2,432 and a first-time buyer property price of £127,974. The area borders Glasgow City Council, providing an affordable option for buyers looking to live near a city.
Also located In Scotland and ranking in joint fourth place, you’ll find Inverclyde, East Renfrewshire, and Renfrewshire. Despite being a bit farther from Glasgow than South Lanarkshire, areas like Inverclyde provide the charm of small-town communities and stunning coastal paths. Moreover, it’s just a 30-minute drive from Glasgow, offering the best of both worlds.
The area offers a monthly median salary of £2,390 and a median first-time buyer house price of £151,264, making it another great contender.
Lanarkshire has once again secured a spot in the rankings, with East Lanarkshire claiming the fifth position. Boasting a median monthly salary of £2,060 and a median first-time buyer house price of £120,379, the area maintains an impressive ratio of 4.52.
Ranking sixth is Aberdeen City and Aberdeenshire. This region offers a median monthly salary of £2,471 and a median first-time buyer house price of £136,179, resulting in a ratio of 4.59, making it an attractive location for those seeking affordability coupled with quality living standards.
Hartlepool and Stockton-on-Tees secure the seventh spot on the list. These small English towns offer a median monthly salary of £2,227 and a median first-time buyer house price of £125,088, translating to a ratio of 4.68.
Eighth is Sunderland, with monthly average salary opportunities of £2,134 and house prices averaging at £120,716 – generating a ratio of 4.71. Placing ninth is Falkirk, another Scottish town offering affordable housing options alongside a respectable median monthly salary of £2,406, surpassing the national average for many residents.
With a median first-time buyer house price of £138,730, Falkirk maintains a ratio of 4.81, making it an achievable option for those looking to save for their first home.
Rounding out the top ten is South Ayrshire, which can offer residents a monthly salary of £2,222 and median house prices of £129,357- providing it with a ratio of 4.85.
On the other end of the scale, numerous areas in London emerged as the least favourable options for first-time buyers, with low median salaries and staggeringly expensive properties.
Kensington and Chelsea and Hammersmith and Fulham topped the list as the least cost-effective areas for first-time buyers.
The area’s median first-time buyer house price was £792,899, with monthly earnings of just £3,261 – making this the most challenging and inaccessible market for first-time buyers in the UK.
The research revealed that the top ten most expensive areas are all located in London – including Westminster, Camden and City of London, Haringey and Islington, Hackney and Newham, Brent, Hounslow, and Richmond upon Thames, Barnet, Redbridge and Waltham Forest and finally Enfield.
