These are Britain’s most affordable first time buyer locations

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

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%<