According to new research by Halifax, Kingston-upon-Hull, Middlesbrough, and Neath Port Talbot are among the top 10 up-and-coming locations for first-time buyers in the UK. These areas offer more affordable housing options, with an average price of £156,000, compared to the national average of £288,030. While property prices have fallen in recent months, the high prices in many popular locations mean that three in five first-time buyers are willing to relocate to a different part of the country in order to purchase a property. Around 40% of prospective first-time buyers aged 18-34 are considering these up-and-coming hubs, even if it means being further away from family, friends, or work.
In the past decade, average first-time Buyer property prices have increased from £148,474 to £288,030. The average deposit for first-time buyers is £54,156. In Kingston-upon-Hull, the 2017 capital of culture, average prices for first-time buyers are £156,509, which is 23% lower than the rest of the region. The city has seen £1.5 billion worth of investment in regeneration projects over the last decade, with ambitions to transform its ports into top tourist destinations.
In Middlesbrough, Neath Port Talbot, and Derry City and Strabane, first-time buyers can expect to pay £156,761, £158,702, and £160,636 respectively for a home. Middlesbrough is located within the proposed Tees Valley Investment Zone and is expected to benefit from a UK-wide growth scheme announced by the Government in September 2022. Falkirk in Scotland comes in at number four on the list, with average prices of £165,511, 12% lower than the regional average.
The top 10 up-and-coming locations also include Ipswich and Eastbourne, with average prices for first-time buyers in Eastbourne being £253,744, 29% lower than the rest of the South East. There is a vast disparity in average first-time buyer property prices across the UK, ranging from around £112,112 in Inverclyde to £682,981 in Westminster, London.
When searching for a home, over half of first-time buyers consider the price of the property as one of the top priorities. Other considerations include proximity to family and friends, local crime rates, a strong community feel, decent transport links, potential job opportunities, green spaces, and proximity to a city. With high prices in many locations, 60% of first-time buyers are willing to look further afield, even if it means being away from loved ones. Additionally, 40% of prospective first-time buyers prioritize location over the property itself, and nearly half are open to buying a smaller home than originally anticipated.
However, many first-time buyers still face challenges, including higher mortgage rates. Forty-one percent of prospective first-time buyers are delaying their plans to purchase a home by four years due to the cost of borrowing and repayments. Fifty-five percent said they would reconsider the type of property they were looking to buy due to cost considerations.
Despite these challenges, the desire to buy a first home remains strong, with almost nine in ten young people keen on getting on the property ladder. There is an appetite among first-time buyers to consider more affordable locations in up-and-coming areas, which offer lower average house prices, access to green space, easy commutes, and safe neighborhoods.
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