Most affordable place for first-time mortgage holders to buy a house in the UK | Personal Finance | Finance

First time buyers are being advised that Scotland is the place to go for the most affordable homes, while many parts of London are out of reach.

Seven of the cheapest options for those looking for a first home are north of the border, according to a new study.

From England, only Durham, Hartlepool/Stockton and Tees, and Sunderland make it in to the top ten of most affordable options.

The study, conducted by mortgage broker L&C Mortgages, analysed median earnings and average First Time buyer house prices per region.

This revealed the UK areas with the best and worst house price-to-income ratio.

Ranking in first place is East and North Ayrshire, which offers First Time Buyers (FTB) 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 FTB house price of just £103,453, which is the lowest in the UK.

Ayrshire’s reasonable salary offerings and impressively low FTB 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 FTBs.

With a median monthly salary of £2,355 and a median FTB 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 FTB average house price, combined with median salary expectations that are just £33 a month higher than the UK annual average.

Ranking in third place is the area covered by Durham County Council. There the median monthly salary is £2,229 with a median first home house price of £111,454, resulting in a favourable ratio of 4.17.

At the other end of the scale, numerous areas in London emerged as the least favourable options with low median salaries and staggeringly expensive properties.

The two London boroughs of Kensington & Chelsea and Hammersmith & Fulham topped the list as the least cost-effective areas for first-time buyers.

The median first-time buyer house price in these areas was a staggering £792,899, with monthly earnings of just £3,261 – making this the most challenging and inaccessible market.

Unsurprisingly, the research revealed that the top ten most expensive areas are all located in London – including Westminster, Camden and City of London, Haringey & Islington, Hackney &Newham, Brent, Hounslow, and Richmond upon Thames, Barnet, Redbridge and Waltham Forest and finally Enfield.

Other areas outside of London that rank within the top twenty-five most expensive regions include Brighton & Hove, East Surrey, Buckinghamshire County Council, West Essex, West Kent, West Surrey, and Bristol.

Notably, Brighton & Hove ranked twelfth, surpassing numerous locations in London, suggesting that getting onto the property ladder there is just as challenging as it is in London.

A spokesperson for L&C Mortgages said: “As house prices have rapidly increased across the UK in recent years, the affordability challenges have only grown.

“Identifying regions with favourable house-to-income cost ratios shows just how regionalised affordability can be.

“Scotland features high up in the list of areas offering numerous areas with more affordable housing prices when compared to earnings. On this metric, it looks to have a solid status as the top UK area for affordability for prospective homeowners.

“Unsurprisingly, London dominated the list of areas where first-time buyers may find it hardest to get on the ladder, highlighting the mismatch between house prices and average earning.

“Additionally, the ranking highlighted the most cost-effective regions in England for first-time buyers were largely to be found in the North East, with Hartlepool, Stockton-on-Tees, and Durham County Council leading the pack. That will be welcomed by first-time buyers looking in those areas, and although never easy to get on the ladder, it could at least offer hope to those saving toward their first purchase.”