10 cheapest cities for first-time buyers
If you’re thinking about buying your first home, you’ve probably seen a lot of headlines about house prices, and how they vary depending on where you’re looking to live.
It’s also helpful to know how much your mortgage payments could be if you’re thinking of buying, so we’ve compared the average asking price of a home in more than 50 cities across Great Britain to highlight where the cheapest cities are for first-time buyers.
We’ve looked at first-time buyer homes, with 2 bedrooms or fewer. And we’ve used UK Finance data for the average deposit amount in each city to calculate how much monthly mortgage repayments could be, based on a home-buyer being offered a five-year, fixed-rate deal spread over 35 years, at the mortgage rate of 4.84%*.
The UK Finance data also shows that the average first-time buyer in Scotland and Wales has a 20% deposit, while in England it is 25%, and that more first-time buyers are stretching to a 35 year term.
The national average price of a first-time buyer home is currently £227,110. But all of the cities that made the top five in our list have an average first-time buyer house price of less than half the national average.
The 10 cheapest cities for first-time buyers
Our data shows that Aberdeen in Scotland is the cheapest city to buy a first-time buyer-type home right now, closely followed by Bradford in West Yorkshire, with Sunderland in the north east in third place.
The average house price in the port city of Aberdeen is £102,601. Found in the north-east of Scotland, it’s known for its distinctive stone architecture, and is the third most populated Scottish city, after Glasgow and Edinburgh.
Each city in the top 10 has an monthly mortgage payment that’s lower than the local average rent, for those buyers able to raise the average deposit size.
Take a look at the cities that made the list, as well as the average local monthly mortgage payment, and the average monthly rent.
| Cities | Average asking price for a first-time buyer type property (2 bedrooms and fewer) | Average monthly mortgage payment (per month)* | Average monthly rental payment (per month) | Mortgage versus Rent |
|---|---|---|---|---|
| Aberdeen | £102,601 | £406 | £775 | -£369 |
| Bradford | £107,929 | £400 | £714 | -£314 |
| Sunderland | £111,263 | £413 | £648 | -£235 |
| Carlisle | £111,268 | £413 | £607 | -£194 |
| Preston | £112,273 | £416 | £787 | -£371 |
| Hull | £113,920 | £423 | £638 | -£215 |
| Dundee | £116,191 | £460 | £821 | -£361 |
| Stoke-on-Trent | £117,113 | £434 | £701 | -£266 |
| Durham | £125,957 | £467 | £796 | -£328 |
| Doncaster | £128,062 | £475 | £707 | -£232 |
*Rate taken from 17th April 2024, provided by specialist mortgage technology provider Podium Solutions.
What’s happening in the rental market right now?
The cost of buying a smaller home (two bedrooms or fewer) has increased by 19% in the last five years. But the cost of renting the same type of property has increased by 39% over the same period.
In fact, of the cities we analysed, just 11 were cheaper to rent than buy. This is when comparing monthly rental payments to monthly mortgage payments.
Our property expert, Tim Bannister, says: “These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates.”
Longer mortgage terms are becoming an increasingly popular option to improve affordability by reducing monthly payments. Taking a mortgage over a longer term will increase the amount of interest that has to be paid, and it is important that first-time buyers are aware of this trade-off.
“Without improvements to the supply of good quality, affordable rental homes in Great Britain, owning your own home is likely to continue to be the end-goal for those that can get their deposit together, and borrow what they need to from a mortgage lender,” Tim adds.
What’s happening with mortgage rates?
If you’re buying a home with a mortgage, you might be wondering what the current average mortgage rates are, and what that could mean for your monthly payments. You can check the average UK mortgage rates here, which we update weekly.
You can also check how much you could borrow with a mortgage using our mortgage calculator. Or, you can apply for a Mortgage in Principle online: it’s quick, free, and your application won’t impact your credit score.
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The data assumes first-time buyers in Scotland and Wales are taking out a five-year fixed, 80% Loan-to-Value (LTV) mortgage at the average 5-year rate of 4.84%, spread over 35 years, and first-time buyers in England are taking out a five-year fixed, 75% Loan-to-Value (LTV) mortgage on the same terms.
Please note: Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a specialist mortgage provider.
