A study by Post Office Money revealed 56% of properties in the UK are in areas which are affordable for buyers taking their first steps onto the property ladder.
The most affordable place, according to the analysis, was Blackpool where the average property price was £110,000.
When compared to the typical income of the average first-time buyer household in the North West, of £40,053, this means that 100% of properties in Blackpool would be within the financial parameters of new homeowners.
Lincoln and Kingston-upon-Hull in East Yorkshire offered similar financial accessibility for first-time buyers, with 100% of properties being affordable for buyers taking their first steps into homeownership.
Out of reach for first-time buyers
Popular commuter hubs in the south of England emerged from the study as the least affordable locations for first-time buyers.
Oxford topped this list, ranking as the least affordable commuter location for new homeowners. Indeed, the city has average property prices of £392,500 and has absolutely no properties which the average first-time buyer could afford.
It was a similar situation in Cambridge and Woking in Surrey.
Affordable commuter locations
However, if any first-time buyers are considering Reading they could be in luck. Although the town was on last year’s ‘least affordable’ list, rising wages in the South East coupled with lower house prices in some areas has meant part of the town has now come within financial grasp of first-time buyers.
Likewise, there has been a similar turnaround in locations within a short distance of Manchester, such as Wigan and Oldham. They have 90% and 88% affordability respectively, according to Post Office Money.
Ross Hunter, Post Office Money said despite early indications of an emerging ‘buyer’s market’ the UK was not at a point where most new buyers would feel the impact.
“Starting the journey with a clear understanding of the areas that are affordable in their desired cities will really help them get to grips with the market and their options,” he explained.
“The mortgage market has also been innovating to support those struggling to save a deposit, with mortgages like Post Office Family Link requiring no cash deposit for those who qualify.”
Post Office Money has launched a tool to help buyers find affordable wards and boroughs within over 80 towns and cities across the UK.
It will also help them map out how long it will take to save for a deposit based on their income, what they can afford to save and local house prices.
Top 10 most affordable areas for local first-time buyers (Source: Post Office Money)
| County | City | Average house price | 1-year change |
FTB income | % of city affordable | |
| 1 | Lancashire | Blackpool | £110,000 | -2% | £40,053 | 100% |
| 2 | Lincolnshire | Lincoln | £149,000 | +4% | £40,913 | 100% |
| 3 | East Yorkshire | Kingston upon Hull | £115,000 | +4% | £38,665 | 100% |
| 4 | Merseyside | Knowsley | £163,000 | +5% | £40,053 | 95% |
| 5 | Staffordshire | Stoke-on-Trent | £116,000 | +5% | £41,796 | 94% |
| 6 | Hampshire | Southampton | £215,000 | +2% | £57,557 | 94% |
| 7 | West Midlands | Sandwell | £148,000 | +8% | £41,796 | 92% |
| 8 | County Durham | Hartlepool | £124,950 | 0% | £36,674 | 92% |
| 9 | Greater Manchester | Wigan | £137,500 | +4% | £40,053 | 90% |
| 10 | Greater Manchester | Oldham | £130,000 | +2% | £40,053 | 88% |
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