Property News - These are Britain’s most affordable first time buyer locations



Posted on Tuesday, October 26, 2021

The latest research by Birmingham estate and lettings agent, Barrows and Forrester, reveals where in Great Britain first time homebuyers can find the best value based on the average price paid for a first home compared to the rest of the market. 

Average UK First Time Buyer Discount

Across Britain, the average first-time buyer home currently costs £220,460 having increased by 9.9% annually. The average price paid by former owner occupiers (FOO) - a.k.a those funding the purchase of a new home with the sale of an existing home - is £309,462 having increased by 11.4% in the past 12 months. 

This means that, on average, first-time buyers in Britain benefit from a 28.8% discount when compared to the rest of the market. 

Scotland home to the biggest  First Time Buyer discount

Regionally speaking, nowhere in Britain do first-time buyers enjoy a bigger discount than in Scotland where they pay an average of £144,829 versus the £218,673 paid by FOOs - a discount of 33.8%. 

Following closely behind is the South East where the average first-time buyer pays 32.9% less to get a foot on the ladder, while the South West (28.5%), West Midlands (28.5%), East of England (27.6%), North West (26.7%), North East (26.1%), East Midlands (26.1%) and Wales (25.9%) are also home to a discount of 25% or more. 

Just Yorkshire and Humber (24.9%), and London (24.3%) are home to a first-time buyer discount of less than 25%. 

Best areas for First Time Buyers at local authority level

Interestingly, when dissecting the market at local authority level, the top 10 best FTB discounts are largely dominated by two areas that are poles apart geographically  - Surrey and Scotland. 

The best first-time buyer discount is available in Elmbridge, Surrey, where they can expect to pay an average price of £450,621, 43.8% below the FOO average of £802,351.

The second-highest first-time buyer discount is found in Woking, Surrey (40.7%); followed by Mole Valley, Surrey (39.1%); Surrey Heath (38.7%); Horsham, Sussex (38.6%); Stirling, Scotland (38.4%); Perth and Kinross, Scotland (38.4%); East Lothian, Scotland (38.3%); Clackmannanshire, Scotland (38.3%); and East Dunbartonshire, Scotland (38.1%).

The smallest first-time buyer discounts tend to be found in London. In fact, in the City of London, first-time buyers spend, on average, 4.3% more than FOO buyers, the only areas where it costs more for your first home. 

In Newham, the discount is just 5.4%; while Tower Hamlets (5.7%); Waltham Forest (10%); and Hackney (11.1%) round off the five local authorities that offer the smallest first-timer discount. 

Managing Director of Barrows and Forrester, James Forrester, commented:

“While a red hot market has been heralded as a sign of economic success during the pandemic, the steep increase in house prices won’t be so warmly welcomed by the nation’s struggling first-time buyers.

Despite talk of an interest rate increase, we look set to see yet further upward growth and so the outlook is a little bleak for those scrimping and saving for a mortgage deposit without the financial security of an existing home to sell. 

The small silver lining is that first-time buyers continue to pay less although this is, of course, influenced by the fact they generally purchase smaller homes to begin with compared to second and third rung buyers. 

Rather than a string of half baked schemes designed to ‘help’ first-time buyers by further fuelling demand, we would love to see the government actually address the issue of supply and build more affordable homes to satisfy our unwavering appetite for homeownership.”

 

NATION & REGION - Table shows current average FTB house price, annual change, current FOO average, annual change and difference between average FTB and FOO

Location

FTB avehp - Aug 2021

Annual FTB avehp increase %

FOO avehp - Aug 2021

Annual FOO avehp increase %

FTB discount

Scotland

£144,829

15.4%

£218,673

18.4%

-33.8%

South East

£282,188

7.8%

£420,359

9.5%

-32.9%

South West

£234,911

7.9%

£328,740

9.7%

-28.5%

West Midlands Region

£189,007

10.3%

£264,347

11.7%

-28.5%

East of England

£267,311

9.0%

£369,261

10.1%

-27.6%

North West

£163,219

11.9%

£222,594

12.9%

-26.7%

North East

£126,661

12.5%

£171,464

14.2%

-26.1%

East Midlands

£185,759

10.0%

£251,307

10.7%

-26.1%

Wales

£167,576

12.3%

£226,229

12.6%

-25.9%

Yorkshire and The Humber

£158,337

8.2%

£210,726

9.3%

-24.9%

London

£455,377

7.0%

£601,844

8.0%

-24.3%

England

£233,267

9.2%

£322,045

10.5%

-27.6%

Great Britain

£220,460

9.9%

£309,462

11.4%

-28.8%

Data sourced from the UK House Price Index: First-time buyer vs Former Owner Occupier - August 2021 (latest available data)



LOCAL AUTHORITY - Table shows current average FTB house price, annual change, current FOO average, annual change and difference between average FTB and FOO market

Location

FTB avehp - Aug 2021

Annual FTB avehp increase %

FOO avehp - Aug 2021

Annual FOO avehp increase %

FTB discount

Elmbridge

£450,621

11.0%

£802,351

14.5%

-43.8%

Woking

£325,527

4.5%

£548,803

6.9%

-40.7%

Mole Valley

£374,098

10.5%

£614,182

12.3%

-39.1%

Surrey Heath

£319,806

15.3%

£521,702

16.2%

-38.7%

Horsham

£310,706

13.2%

£505,865

14.8%

-38.6%

Stirling

£171,143

16.0%

£277,667

17.7%

-38.4%

Perth and Kinross

£166,797

15.6%

£270,596

17.1%

-38.4%

East Lothian

£208,870

15.3%

£338,643

18.1%

-38.3%

Clackmannanshire

£118,644

14.6%

£192,332

15.6%

-38.3%

East Dunbartonshire

£179,687

15.3%

£290,232

16.4%

-38.1%

Three Rivers

£416,794

6.7%

£672,489

9.5%

-38.0%

Waverley

£364,630

6.0%

£587,121

7.7%

-37.9%

East Renfrewshire

£200,542

18.2%

£322,341

21.3%

-37.8%

Epping Forest

£352,860

-0.8%

£567,044

0.9%

-37.8%

Tandridge

£390,903

14.3%

£627,473

16.3%

-37.7%

East Hampshire

£294,045

5.7%

£471,342

7.4%

-37.6%

St Albans

£443,830

13.1%

£705,614

15.6%

-37.1%

South Lanarkshire

£118,411

14.2%

£186,077

15.7%

-36.4%

Guildford

£354,295

5.2%

£556,405

7.0%

-36.3%

Reigate and Banstead

£316,826

-0.9%

£495,410

1.3%

-36.0%

Windsor and Maidenhead

£390,770

7.3%

£608,240

9.0%

-35.8%

Basingstoke and Deane

£256,589

11.0%

£398,936

12.0%

-35.7%

City of Edinburgh

£249,680

9.8%

£386,574

11.3%

-35.4%

Mid Sussex

£321,810

13.9%

£496,064

15.0%

-35.1%

Wychavon

£252,916

21.0%

£388,827

21.5%

-35.0%

Winchester

£340,338

6.4%

£520,720

8.0%

-34.6%

New Forest

£292,255

14.6%

£446,482

15.8%

-34.5%

Argyll and Bute

£121,977

9.8%

£185,683

10.8%

-34.3%

East Hertfordshire

£322,789

4.0%

£491,220

5.4%

-34.3%

Welwyn Hatfield

£340,684

7.3%

£518,158

9.3%

-34.3%

North Hertfordshire

£293,237

7.3%

£444,354

9.9%

-34.0%

Uttlesford

£336,515

12.2%

£509,826

13.5%

-34.0%

City of Aberdeen

£124,685

6.7%

£188,769

8.8%

-33.9%

Brentwood

£353,060

6.2%

£534,091

8.7%

-33.9%

Scottish Borders

£151,470

28.9%

£229,086

29.7%

-33.9%

Cheshire East

£203,190

10.7%

£307,063

12.1%

-33.8%

Tewkesbury

£234,713

7.3%

£354,693

9.1%

-33.8%

South Ayrshire

£128,109

15.4%

£193,410

16.5%

-33.8%

North Lanarkshire

£105,639

15.9%

£159,215

18.1%

-33.7%

Dacorum

£342,896

5.9%

£516,251

7.9%

-33.6%

Inverclyde

£94,418

23.6%

£142,047

25.2%

-33.5%

East Devon

£240,572

8.1%

£361,822

8.3%

-33.5%

East Ayrshire

£91,622

13.7%

£137,782

14.9%

-33.5%

Epsom and Ewell

£380,154

6.1%

£570,734

7.5%

-33.4%

Maldon

£284,961

12.6%

£427,635

13.5%

-33.4%

Monmouthshire

£228,656

1.1%

£342,481

1.3%

-33.2%

Chichester

£328,405

10.2%

£491,513

10.8%

-33.2%

Fife

£127,843

14.5%

£190,989

15.9%

-33.1%

Maidstone

£251,093

8.4%

£373,854

10.0%

-32.8%

Herefordshire

£201,652

6.2%

£299,591

6.9%

-32.7%

Hart

£338,923

7.1%

£503,515

7.7%

-32.7%

Cotswold

£301,841

-1.0%

£447,443

-0.2%

-32.5%

Renfrewshire

£115,043

16.6%

£170,453

18.8%

-32.5%

Wokingham

£331,168

2.2%

£490,207

2.4%

-32.4%

Folkestone and Hythe

£214,312

3.8%

£317,045

4.7%

-32.4%

West Devon

£228,444

20.2%

£337,773

19.8%

-32.4%

West Lothian

£155,194

14.8%

£229,358

16.7%

-32.3%

Eastleigh

£260,466

13.6%

£384,608

14.7%

-32.3%

Rugby

£218,794

14.4%

£322,752

15.2%

-32.2%

Solihull

£241,437

6.2%

£355,536

8.0%

-32.1%

Lichfield

£227,658

13.4%

£335,140

15.0%

-32.1%

Bournemouth Christchurch and Poole

£242,717

7.2%

£357,008

8.4%

-32.0%

Bromley

£365,083

6.2%

£536,255

7.9%

-31.9%

Hertsmere

£415,829

8.7%

£610,391

11.1%

-31.9%

Fylde

£173,024

13.5%

£253,930

14.6%

-31.9%

Richmond upon Thames

£566,111

3.2%

£830,464

5.8%

-31.8%

Runnymede

£337,624

2.4%

£494,890

3.5%

-31.8%

Aberdeenshire

£155,158

12.1%

£227,385

13.1%

-31.8%

West Berkshire

£287,423

6.0%

£421,119

7.2%

-31.7%

Mid Suffolk

£218,758

9.2%

£320,195

9.0%

-31.7%

North Ayrshire

£99,864

13.7%

£145,993

15.0%

-31.6%

Vale of White Horse

£307,850

9.8%

£449,736

10.7%

-31.5%

Wiltshire

£239,063

9.2%

£349,205

10.5%

-31.5%

Stroud

£236,519

6.4%

£344,371

8.0%

-31.3%

Falkirk

£123,404

15.9%

£179,112

17.0%

-31.1%

Angus

£130,896

12.8%

£189,855

13.8%

-31.1%

Test Valley

£286,037

10.5%

£414,284

9.8%

-31.0%

Harborough

£270,401

13.6%

£391,354

14.6%

-30.9%

Fareham

£261,097

8.3%

£377,809

9.5%

-30.9%

Lewes

£300,029

16.5%

£433,993

17.7%

-30.9%

Huntingdonshire

£222,419

8.1%

£321,661

9.6%

-30.9%

Bracknell Forest

£288,892

4.6%

£417,757

5.6%

-30.8%

Arun

£254,958

13.9%

£368,526

15.4%

-30.8%

Tunbridge Wells

£332,995

8.4%

£481,110

10.3%

-30.8%

Warwick

£269,065

6.4%

£388,501

7.9%

-30.7%

Worthing

£249,322

14.8%

£359,425

14.7%

-30.6%

Milton Keynes

£235,827

10.1%

£339,364

11.4%

-30.5%

Stratford-on-Avon

£296,047

18.7%

£425,872

20.2%

-30.5%

Stockport

£214,740

10.6%

£308,132

11.7%

-30.3%

Sevenoaks

£361,516

1.8%

£518,564

2.4%

-30.3%

Bromsgrove

£265,639

14.9%

£380,942

16.5%

-30.3%

Croydon

£326,629

3.5%

£468,298

5.1%

-30.3%

Babergh

£246,686

12.9%

£353,456

13.5%

-30.2%

Tonbridge and Malling

£312,082

3.7%

£446,943

4.8%

-30.2%

Highland

£147,772

8.0%

£211,366

8.3%

-30.1%

Dorset

£246,463

8.8%

£352,099

9.6%

-30.0%

Rushcliffe

£242,093

3.5%

£345,799

4.7%

-30.0%

Sutton

£335,387

5.7%

£478,853

7.5%

-30.0%

Midlothian

£181,390

15.0%

£258,952

17.3%

-30.0%

Barnet

£452,259

4.1%

£645,495

5.8%

-29.9%

South Oxfordshire

£382,581

8.6%

£545,816

9.4%

-29.9%

City of Dundee

£125,307

15.0%

£178,618

15.9%

-29.8%

Canterbury

£276,074

10.6%

£393,338

11.6%

-29.8%

Newark and Sherwood

£171,287

12.4%

£244,006

13.8%

-29.8%

Northumberland

£149,702

14.3%

£213,235

15.7%

-29.8%

West Lancashire

£163,426

8.4%

£232,722

8.8%

-29.8%

Bedford

£260,942

13.9%

£370,587

15.6%

-29.6%

North Devon

£208,973

5.6%

£296,139

6.6%

-29.4%

Hartlepool

£103,019

14.9%

£145,924

16.6%

-29.4%

East Suffolk

£214,877

8.3%

£304,170

8.4%

-29.4%

Warrington

£187,871

13.7%

£265,595

15.0%

-29.3%

Rochford

£325,475

16.4%

£459,554

17.6%

-29.2%

Rother

£273,872

18.4%

£386,150

19.2%

-29.1%

Cheltenham

£244,299

1.5%

£344,426

3.5%

-29.1%

Cheshire West and Chester

£200,158

14.7%

£282,129

15.8%

-29.1%

Preston

£119,831

9.3%

£168,755

10.8%

-29.0%

Harrogate

£240,782

6.3%

£339,072

7.6%

-29.0%

Exeter

£232,589

7.8%

£327,532

9.2%

-29.0%

Central Bedfordshire

£270,799

8.0%

£380,988

9.1%

-28.9%

Rutland

£272,452

4.8%

£383,108

5.2%

-28.9%

South Somerset

£208,492

9.3%

£293,128

10.3%

-28.9%

Dover

£222,752

6.6%

£313,122

7.9%

-28.9%

East Staffordshire

£169,211

10.2%

£237,652

11.6%

-28.8%

Somerset West and Taunton

£208,625

8.7%

£292,965

9.1%

-28.8%

Chelmsford

£283,062

1.6%

£397,326

3.4%

-28.8%

Cherwell

£276,699

15.5%

£388,385

16.7%

-28.8%

Sefton

£152,023

10.4%

£213,247

11.7%

-28.7%

Forest of Dean

£208,991

5.3%

£293,094

5.8%

-28.7%

High Peak

£183,646

8.0%

£257,428

8.4%

-28.7%

Broxbourne

£309,878

7.0%

£434,334

8.7%

-28.7%

Newport

£176,735

8.4%

£247,402

10.2%

-28.6%

Leeds

£184,356

10.0%

£258,020

11.3%

-28.5%

Mid Devon

£208,430

6.2%

£291,639

6.9%

-28.5%

Hillingdon

£372,335

8.8%

£520,925

9.4%

-28.5%

Shropshire

£204,742

16.4%

£286,378

17.3%

-28.5%

Isle of Wight

£201,884

9.2%

£282,298

10.0%

-28.5%

Lewisham

£373,483

2.1%

£520,890

3.4%

-28.3%

West Suffolk

£240,406

12.4%

£335,252

13.1%

-28.3%

Mendip

£253,071

19.9%

£352,572

20.9%

-28.2%

South Hams

£276,650

10.9%

£384,711

10.9%

-28.1%

Telford and Wrekin

£162,202

14.5%

£225,518

15.6%

-28.1%

Chorley

£172,777

15.4%

£240,000

16.0%

-28.0%

Camden

£804,530

13.1%

£1,117,309

14.6%

-28.0%

Halton

£141,300

10.0%

£196,173

10.5%

-28.0%

Brent

£436,369

3.3%

£605,712

4.3%

-28.0%

North Somerset

£251,030

11.7%

£348,239

12.9%

-27.9%

Vale of Glamorgan

£229,760

16.4%

£318,629

17.2%

-27.9%

Havant

£255,035

13.1%

£353,628

14.8%

-27.9%

Teignbridge

£230,381

9.8%

£318,666

10.2%

-27.7%

Southwark

£470,792

6.3%

£650,618

6.8%

-27.6%

Wealden

£306,715

13.0%

£423,722

13.4%

-27.6%

Cambridge

£418,362

10.8%

£577,299

12.6%

-27.5%

North Norfolk

£240,243

16.3%

£331,386

16.9%

-27.5%

Torridge

£214,926

13.6%

£296,190

13.3%

-27.4%

Ashford

£258,173

4.9%

£355,751

6.1%

-27.4%

Thanet

£233,699

13.9%

£322,020

15.2%

-27.4%

Eden

£181,473

6.5%

£249,952

6.7%

-27.4%

Southend-on-Sea

£271,064

11.2%

£372,543

11.9%

-27.2%

Carlisle

£130,622

12.7%

£179,499

14.0%

-27.2%

Redditch

£195,560

8.7%

£268,348

10.2%

-27.1%

Trafford

£279,749

10.6%

£383,483

12.3%

-27.1%

Wirral

£158,177

13.1%

£216,787

14.1%

-27.0%

Basildon

£287,918

7.1%

£394,470

8.0%<






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