HOUSE buyers have the chance to put down an affordable deposit as the cheapest places to buy across the entire Nation have been revealed.
New research has uncovered the average house prices in every major town and city making it easier for first-time buyers to get their foot on the property ladder.
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Northerners may be pleased to discover that the top three places to live for affordability can be found near them.
The findings by April Mortgages compared listings with the local average income to offer a more in-depth insight.
Blackburn has managed to hold on to the top spot with an average house price of £158,293 compared to a £33,561 wage.
Sunderland took the silver with £149,590 average house prices and £33,883 as the calculated local salary.
Darlington followed closely behind with a property value of £162,519 and a £33,008 average pay packet.
April Mortgages’ new data has also led to a long list of unaffordable areas when considering average prices.
Around 16 towns and cities have been calculated as requiring a £200,000 deposit or more just to nab a mortgage.
These include St Albans, in Hertfordshire and Guildford, in Surrey.
The new analysis also exposed the average deposit for more than half of homeowners sits above £100,000.
Mark Eaton, chief operating officer at April Mortgages said: “The speed at which house prices are rising is leaving many prospective buyers unable to afford a home.
“House prices have soared over the last 20 to 30 years and are estimated to be worth over nine times the average household income.
“Borrowers on lower or average salaries are facing an almighty battle to save a large enough deposit to climb onto the property ladder.”
Mr Eaton argued banks need to “wake-up to new ways of thinking” when it comes to mortgages in the midst of an affordability crisis.
Only 14 of the UK’s 100 largest towns and cities offer an average salary that lends itself to affording a home with a 10 per cent deposit.
Most mortgages are limited to no more than 4.5 times an individual’s gross annual salary as a result of affordability checks.
A major barrier for most looking to purchase their first home is the stringent checks that look at income.
Recent reports have suggests Rachel Reeves could look to kickstart the economy through housing.
One idea has been for banks to offer more loans to buyers with smaller deposits.
Deposits are cash payments usually required to be paid upfront before a property can be purchased, even when being considered for mortgage.
Most first time buyers are required to pay 20 per cent on their desired home.
In December 2024 the average price of a house was £360,197, according to Rightmove.
That means wanna-be buyers would need to pay a deposit of £72,000 in order to be accepted for a mortgage.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan – The Government will lend you up to 20% of the home’s value – or 40% in London – after you’ve put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you’re restricted to specific ones.
Mortgage guarantee scheme – The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it’s eligible for homes up to £600,000.
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