Property prices are currently soaring across the UK. While this might be good news for sellers and agents, it can make scraping a deposit together even trickier for first-time buyers.
To help out those who are looking to snap up their first-ever home, estate agent Purplebricks has launched a new heat map that shows the UK’s best locations and postcodes to purchase. Here is everything you need to know.
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Why is it currently harder for first-time buyers to afford a home?
First-time buyers have faced a slew of challenges in the last year when it comes to buying a home. As if saving for a deposit wasn’t difficult enough, the first lockdown resulted in many lenders withdrawing low deposit mortgages.
The end of lockdown released pent-up demand into the market which drove up house prices. Recently, a lack of houses for sale has resulted in demand exceeding supply. Coupled with the impending stamp duty deadline on 30 June, the market has devolved into a frenzy, with prices rising even further and becoming increasingly out of reach for many first time buyers.
Thankfully, government initiatives such as the mortgage guarantee scheme are helping to mitigate some of this impact of increasing house prices. Under this scheme, buyers can get a mortgage with as little as a 5% deposit.
What is the average budget for first-time buyers?
According to Purplebricks’ research, the average first-time buyer’s budget is £189,273. This essentially means that most first-time buyers are searching for properties worth around £200,000.
With the average UK home now costing over £242,000 according to recent data, first-time buyers are understandably struggling to find homes they can afford.
Which are the UK’s best locations for first-time buyers?
According to Purplebricks, 40% of us are now considering moving up to 60 miles away from our places of work due to being less constrained by the commute. Indeed, if the commute isn’t an issue, it may make sense to look further afield for an affordable first home.
Taking the average first-time buyer’s budget and combining it with increased willingness to look a little further afield, Purplebricks have created a heat map of all of its properties around the UK currently priced under £200,000, allowing buyers to see the best places to buy.
According to the heat map, the five best locations for first-time buyers in the UK are:
- Aberdeen City Centre, Torry (AB11)
- Birchwood, Lincoln (LN6)
- Long Eaton, Erewash (NG10)
- Ashton on Ribble, Preston (PR2)
- Cobridge, Staffordshire (ST1)
In addition to buyer-friendly property prices, most of these areas come with all of the necessary social amenities, such as adequate transportation networks, schools, shops, bars and restaurants, and so on.
What about major city areas?
Purplebricks says that despite rising property prices, there are still opportunities for first-time buyers in city areas.
In Greater London, for example, there are areas with suitable properties on the market for the first-time buyer budget, with Romford having the highest number of such properties.
Other areas where first-time buyers could be able to snap up a property that fits their budget include Croydon, Enfield, Bromley and Harrow.
While rising house prices are making it more difficult to get on the property ladder, all hope is not lost. There are still opportunities available for first-time buyers that are within their budget.
Purplebricks’ heat map suggests that buyers probably just need to look a little further afield.
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