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Best places to buy revealed for first-time buyers

New research reveals the budget-friendly areas of the UK for those making their first steps on the housing ladder.

Sheila Manchester

New homes Stone real estate image

First-time buyers don’t have it easy these days, with house prices reaching terrifying levels, but there are some accessible places for those who can save – taking advantage of the offers on new build homes.

Stone Real Estate identified the areas that offer the best affordability, based on earnings available, average new build house price and time taken to save a mortgage deposit.

Researchers looked at the current average cost of a new build property across 50 cities, working out the cost of a 10% mortgage deposit and compared to average monthly net salary to see where is home to the best affordability ratio and the fastest time to save.

A new build costs an average of £295,950, with a 10% deposit of £29,595. The average monthly net salary currently sits at £1,993 and so it would take 14.9 months for the average homebuyer to save a deposit.

Delight in Durham… and in Dundee
Durham offers the best option for homebuyers. With the average monthly salary at £1,803 and a 10% deposit on the average new build costing £14,938, it would take 8.3 months of saving to get a foot on the new home ladder.

Dundee (8.9), Stirling (9.4), Stoke (9.8) and Glasgow (9.9) are also home to an affordability ratio of fewer than 10 months to save a 10% new build deposit. Bradford (10.2), Derby (10.3), Swansea (10.4), Sheffield (10.7), Liverpool (10.8), Lancaster (11), Lincoln (11.3), Nottingham (11.5), Salford (11.6) and Wakefield (11.7) would all also take less than a year.

London highs
London’s higher wage means it’s not the city with the longest affordability ratio for new builds and with an average take-home of £2,593, it would take 18.7 months to save the average new build deposit of £48,434.

The longest is in Exeter where homebuyers have the worst chance of saving for a brand new property, with the affordability ratio between wage and deposit at 24.3 months, closely followed by Cambridge at 24.1.

Bexley is home to London’s best option at 14.7 months between the average deposit and the monthly take-home wage, Greenwich (15.1), Croydon (15.5), Richmond (15.6) and Tower Hamlets (15.7) are also amongst some of the best.

September 17, 2019

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