Kingston-upon-Hull, Middlesbrough and Neath Port Talbot are among the top 10 most promising locations for first-time buyers, new research claims.
First-time buyers looking to purchase a home in these locations can expect to pay around £156,000, around £132,000 less than the typical price of £288,030 paid by those on the first rung of the property ladder in Britain.
While property prices have fallen in recent months, high prices in many hot spots mean three in five first-time buyers are willing to move to a different part of the country to be able to buy a property, Halifax said.
Around 40 per cent of potential first-time buyers, aged 18 to 34, are looking to buy in up-and-coming centres, with many forced to look further away from family, friends or work, the lender says.
Good place? Halifax has named Kingston-upon-Hull as one of the best places for first-time buyers
Take a look: Halifax unveils its list of top 10 promising locations for first-time buyers
Average property prices for first-time buyers have risen from £148,474 to £288,030 in a decade, the findings added.
The average deposit made by first-time buyers is £54,156.
In Kingston-upon-Hull, the cultural capital of 2017, average prices for first-time buyers are £156,509, 23 per cent less than seen elsewhere in the region.
In its 2023 first-time buyers report, Halifax said Kingston-upon-Hull had seen £1.5bn worth of investment pumped into regeneration projects in the last decade.
He added: “There are ambitions to transform its ports into world-class tourist destinations and offer first-time buyers some of the most affordable homes in the UK.”
In Middlesbrough, Neath Port Talbot and Derry City and Strabane, first-time buyers can expect to shell out £156,761, £158,702 and £160,636 respectively for a home.
Offering an insight into Middlesbrough, Halifax said: “Located within the proposed Tees Valley investment zone, Middleborough looks set to benefit from a UK-wide plan to accelerate growth, announced by the Government in September 2022.”
Centers: Take a look at the 10 most promising centers for first-time buyers
Falkirk in Scotland comes fourth in the top 10 most promising locations, with an average first-time buyer price of £165,511, 12 per cent less than average prices seen elsewhere in the region.
Ipswich and Eastbourne also feature in the top 10, with average prices for first-time buyers in the latter of £253,744, 29 per cent less than the rest of the south-east.
The disparity in average property prices for first-time buyers across the UK remains huge, ranging from around £112,112 in Inverclyde to a whopping £682,981 in Westminster, London, according to Halifax.
What do you want? Priorities for potential first-time buyers in the UK
What are first-time buyers looking for?
More than half of first-time buyers told Halifax that property price was one of their top priorities when looking for a home.
Being close to family and friends and taking note of local crime rates in the area were also high on the list of considerations, as was whether or not an area has a strong community feel and whether decent transport links are available. .
Potential places to work, green spaces and proximity to a city also ranked in the top 10 things first-time buyers consider.
With prices high in many places, around 60 per cent of first-time buyers are willing to look further afield, and potentially away from friends and family, to get on the property ladder.
And two in five potential first-time buyers surveyed by Halifax said the location of the property was more important than the property itself.
Nearly half said they were willing to buy a smaller home than they had originally planned.
Kim Kinnaird, Halifax mortgage director, said: “Despite fluctuating house prices, the desire to buy a first home is not going away, with almost nine in ten young people wanting to get on the property ladder.” .
Kinnaird said there was “appetite” among first-time buyers to consider more affordable locations in up-and-coming areas.
He added: “These are based on relatively low average house prices, along with other positives such as access to green spaces, easy commutes and safe neighbourhoods.”
Are mortgage rates hurting first-time buyers?
Halifax said many first-time buyers still face big challenges getting up the property ladder, including higher mortgage rates.
It said 41 per cent of prospective first-time buyers were delaying their plans to buy a home by four years, with many considering the cost of the loan and the scale of repayments.
Fifty-five percent said they would reconsider the type of property they were looking to purchase, given cost considerations.
The findings also revealed that 71 percent of first-time buyers prioritized other purchases over a home.
31 percent said they prioritized traveling over getting a home, while 30 percent said they focused on buying a car instead.
Meanwhile, 30 percent of first-time buyers surveyed said they did not understand the home-buying process.
On the mortgage front, the average five-year fixed rate in the UK is currently 5.96 per cent, according to Moneyfacts. This means that someone with a £200,000 mortgage and a 25-year term would end up paying £1,284 a month.
While mortgage rates are still considerably higher than they were a few years ago, they are slowly declining.
On Tuesday, Nationwide Building Society said it was cutting rates on most of its fixed mortgages by up to 0.45 percentage points.
First-time buyers who can buy with at least a 40 per cent deposit will also be able to get a rate of 4.74 per cent with Nationwide, if fixed for five years.
What can you get as a first time buyer?
Here are three homes for sale through Zoopla in locations highlighted in the latest Halifax Finds.
The first is for sale through William H Brown on Zoopla and is located on Charlestown Way.Victoria Pier, Peel, for offers over £150,000. It has two bedrooms, outdoor parking and a garden at the back.
It could be yours – this semi-detached house on Charlestown Way, Victoria Dock, Hull, is for sale with offers over £150,000
Light: The bright living room of the house for sale in Charlestown Way, Victoria Dock
Bedrooms: One of the bedrooms in the semi-detached property for sale in Hull
The second home on offer is located in Middlesbrough.
Is a three bedroom semi-detached house for sale through Manners & Harrison Marton on Zoopla for £155,000. It has a vehicle entrance, garage and front and rear gardens.
For sale: This three-bedroom semi-detached house in Middlesbrough is on the market for £155,000
Interior: The ground floor offers a modern fitted kitchen which flows into the ground floor bathroom and living room.
Outdoor space: Middlesbrough semi-detached house has a rear garden
The third home for sale is located in Lower Port Talbot.
Offered for sale by John Francis through Zoopla, it has two bedrooms and one bathroom. and is for sale for offers in the region of £150,000.
Great opportunity: This two-bedroom semi-detached house in Neath Port Talbot for sale through John Francis could be yours for offers in the region of £150,000
Relaxing – one of two bedrooms at the Neath Port Talbot property
Ready to move in: Neath Port Talbot property’s kitchen is ready to use
Green space: Neath Port Talbot property has enclosed rear garden