Map reveals the 10 most affordable places for first-time buyers where you need a deposit of just £7k
THE top ten most affordable areas for first time buyers have been revealed.
County Durham in the North East of England has been named the cheapest areas for first time buyers to secure a home, according to new figures by Halifax.
This is because the average first time buyer paid £142,248 for their home in 2024.
It means households would need a deposit of a minimum of just £7,112 to secure this home, if they secured a mortgage with a 5% deposit.
Burnley has also been ranked as a very accessible area for first-time buyers to purchase a home, with the average person paying £146,076 for their property.
Buyers could secure a typical home in this area with a 5% deposit of £7,303.
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These types of mortgage deals mean a buyer only needs to put down 5% of the property price as a deposit when purchasing a home.
Not everyone will be able to get a 5% deposit, but some lenders will let you apply through schemes such as the mortgage guarantee scheme as long as you meet certain conditions.
This means they can secure a mortgage for the remaining 95% of the cost, often referred to as a "95% loan-to-value (LTV)" mortgage.
However, it is worth noting that interest rates could be as higher on these mortgages, because lenders consider smaller deposits to be riskier.
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Other areas named as cheap for first-time buyers include the Isle of Anglesey, where the average buyer paid £151,747 for their home.
Pendle has also been flagged as an attractive area for wannabe buyers with property owners typically paying £151,710 for a home.
You can see the top ten areas for first time buyers below:
- County Durham - £142,248
- North West, Burnley - £146,076
- Wales, Isle of Anglesey - £151,747
- North West, Pendle - £151,710
- North West, Cumberland - £175,848
- North West, Hyndburn - £147,038
- Northern Ireland, Ards and North Down - £180,685
- North West, Blackpool - £148,856
- Wales, Merthyr Tydfil - £160,552
- Yorkshire and The Humber, North Lincolnshire - £171,179
Figures by Halifax show the number of first-time buyers jumped by 19% in 2024 versus the year prior.
The group said the typical cost of a first home is £331,034, and the average first time buyer is 33, which is two years older than a decade ago.
Toby Leek, president of Propertymark, said: “It’s positive to see that the number of first-time buyers coming to the housing market is on the up.
"However, from the tail end of 2024, this is likely, in part, due to the Stamp Duty rises commencing in England and Northern Ireland from April."
TROUBLE FOR FIRST TIME BUEYERS
Rising house prices have piled pressure on first-time buyers who are also dealing with a mixture of wage stagnation and hikes to the cost of daily living.
Meanwhile, extra stamp duty relief available to first-time buyers since 2022 will end in April 2025.
As a result, a first-time buyer purchasing a property valued at £425,000 will incur a stamp duty charge of £6,250.
A glimmer of hope can be found in the Monetary Policy Committee (MPC), the Bank of England's rate-setters, cutting the base rate from 4.75% to 4.5% last week.
The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs.
A base rate cut can mean that mortgage rates are lowered, which is good news for homeowners.
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Earlier this week, Santander launched a two-year and five-year fix with a rate of just 3.99%.
It's the first sub-4% mortgage on the market since November last year.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan - The Government will lend you up to 20% of the home's value - or 40% in London - after you've put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you're restricted to specific ones.
Mortgage guarantee scheme - The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it's eligible for homes up to £600,000.