Are you dreaming of owning your first home without breaking the bank? Recent data from Rightmove unveils the top cities where first-time buyers can make their home-owning dreams come true, all while keeping their finances in check. From affordable monthly payments to favorable renting comparisons, here’s everything you need to know about stepping onto the property ladder in the UK.
Aberdeen Leads the Pack
Aberdeen shines as the most affordable city for first-time buyers in the UK. According to Rightmove’s latest figures, a typical first-time buyer property, which includes homes with up to two bedrooms, has an average asking price of just £102,602. This translates into a monthly mortgage payment of approximately £406, assuming a 20% deposit and a 35-year mortgage term at a rate of 4.84%.
More Cities Where Your Money Goes Further
Bradford and Sunderland follow closely behind Aberdeen, offering excellent affordability. Properties in Bradford have an average asking price of £107,929 with a monthly mortgage cost around £400, while in Sunderland, the figures are £111,263 and £413 respectively. These cities, along with Carlisle, where renters find the best deals at an average of £607 per month, make up some of the best places for first-time buyers looking to maximise their investment.
Comparing Costs of Buying vs. Renting
The current housing market landscape shows that owning a home can be more economical than renting, especially for those who have managed to save for a 20% deposit. In fact, monthly mortgage payments are generally cheaper than rental costs in major cities across Great Britain, including the bustling capital, London.
A Five-Year Comparison
Over the last five years, rental prices for small homes have surged by 39%, significantly outpacing the 19% increase in buying costs for similar properties. This stark difference highlights the growing appeal of buying over renting.
Financial Insights for Future Homeowners
Tim Bannister from Rightmove points out that despite the higher mortgage rates compared to last year, buying a home remains an attractive option due to the steep rise in rental costs. He notes that more first-time buyers are opting for longer mortgage terms to keep monthly payments manageable. However, it’s crucial for buyers to be aware of the total interest paid over time when choosing longer repayment periods.
Top Cities for Affordable Home Purchases
Here’s a quick look at the cities offering the best value for first-time buyers, highlighting both purchase prices and monthly costs:
- Aberdeen: £102,601; £406 monthly mortgage
- Bradford: £107,929; £400 monthly mortgage
- Sunderland: £111,263; £413 monthly mortgage
- Carlisle: £111,268; £413 monthly mortgage
- Preston: £112,273; £416 monthly mortgage
- Hull: £113,920; £423 monthly mortgage
- Dundee: £116,191; £460 monthly mortgage
- Stoke-On-Trent: £117,113; £434 monthly mortgage
- Durham: £125,957; £467 monthly mortgage
- Doncaster: £128,062; £475 monthly mortgage
For those eager to escape the rental cycle, the current market offers compelling reasons to consider buying, especially in cities like Aberdeen, Bradford, and Sunderland where the cost benefits are most pronounced. With careful planning and a solid understanding of mortgage terms, first-time buyers can find valuable opportunities to own a home more affordably than renting.