The London Borough of Barking and Dagenham has been hailed the most popular location for first-time buyers by Zoopla.
Three-bed houses valued at £300,000 were the most in-demand home in this area amongst those taking their first step on the housing ladder, according to the property website.
Those looking to buy their first home in this location would need a deposit of £45,000 and an income of £56,667, on average, to make their purchase.
The study by Zoopla aimed to uncover Britain’s most popular areas for first-time buyers and how much it would cost to buy a first home in these places.
The most popular areas, it revealed, all shared one common characteristic – being within reach of the UK’s biggest cities but also being affordable. Second and third on the hopspot top 10 were also London boroughs (see table below).
Commuter towns
Indeed, it would seem savvy first-time buyers were locating in places just outside big cities rather than the centre. Oldham was popular for those who wanted to be close to Manchester while people keen to live and work in Birmingham found they could afford Wolverhampton more easily.
First-time buyers are largest group of people in the housing market, according to Zoopla, accounting for close to two in every five sales. Lower mortgage rates and more availability of loans which require only a small deposit have boosted the growth
Richard Donnell, research director at Zoopla, explained much of the growth in first time buyer numbers had been recorded in regional housing markets where the cost of buying remained attractive.
“Our analysis shows that first time buyers are seeking out the most affordable areas which deliver the best value for money in terms of accessibility and property type and size,” he said.
“In the highest priced markets, first-time buyers are seeking two bed homes but across large parts of the country first-time buyers are seeking out three bed homes.”
Britain’s top 10 first-time buyer hotspots (source: Zoopla)
| Area | Average Price of property FTBs inquire about | Most popular property type | Deposit required (15%) | Income required | |
| 1 | Barking and Dagenham | £300,000 | 3 bed Terraced | £45,000 | £56,667 |
| 2 | Tower Hamlets | £425,000 | 2 bed Flat | £63,750 | £80,278 |
| 3 | Newham | £340,000 | 2 bed Flat | £51,000 | £64,222 |
| 4 | Reading | £240,000 | 2 bed Flat | £36,000 | £45,333 |
| 5 | City of Wolverhampton District | £145,000 | 3 bed Semi | £21,750 | £27,389 |
| 6 | Thurrock | £260,000 | 3 bed Terraced | £39,000 | £49,111 |
| 7 | Greenwich | £340,000 | 2 bed Flat | £51,000 | £64,222 |
| 8 | Luton | £215,000 | 3 bed Semi | £32,250 | £40,611 |
| 9 | Southwark | £435,000 | 2 bed Flat | £65,250 | £82,167 |
| 10 | Crawley | £255,000 | 3 bed Terraced | £38,250 | £48,167 |
