The lender has analyzed the average price paid by people buying their first home in areas across the country to help others choose an affordable location. And it’s also revealed the best expert tips for aspiring homeowners.
Topping the list is East Ayrshire, where the average price paid for a first home is just £150,000. But the research also uncovered other locations in different regions where prices are more realistic for starter budgets.
Lloyds also revealed that the average age of a typical first-time home buyer is 32, but can be as high as 27 in some areas thanks to affordable house prices.
It highlights that while there may be many challenges for first-time buyers in the housing market, there are still many areas where climbing the property ladder is more achievable.
And the list will be announced on the day Lloyds opens applications for its new £5,000 deposit mortgage, available for homes up to £300,000. The mortgage is intended to help first-time buyers who would otherwise struggle to raise money without financial support from family.
What are the top 10 most affordable areas in the UK for first-time buyers?
First place goes to East Ayrshire in Scotland, where the average first-time buyer price is £147,353. The area is well connected to Scotland’s central belt, with direct routes to Glasgow and nearby employment centres.
Scotland is high on the list, as are locations in the north of England where prices are below the UK average.
(Source: Lloyds)
Amanda Bryden, head of mortgages at Lloyds, said the research shows there is still real value for first-time buyers in the housing market, especially those who want to be flexible and open-minded about locations.
She said: “Lower deposit options, such as our new £5,000 deposit mortgage, could help some people get on the ladder years earlier than they might expect.
“Speaking to a mortgage expert early can help. It will give you a clearer picture of what you can comfortably afford, and the confidence to make choices that feel right for you, no matter what the broader market does.”
What are the most affordable areas in each UK region?
Lloyds research has also identified an area in each region where prices are most affordable, to help those who prefer to stay local.
In Wales it’s Merthyr Tydfil, with houses there costing an average of £156,498. In Northern Ireland it’s Mid and East Antrim, where a first home typically has a price tag of £175,308.
For those living in England, the most affordable place is Blackpool in the North West, with people buying their first home paying an average of £150,780.
In Scotland it is East Ayrshire, described above. For those who would like to settle down London the most affordable homes are in Barking and Dagenham, with an average first-time buyer price tag of £363,748.
(Source: Lloyds)
Amanda’s best tips for starters
Lloyds mortgage expert Amanda Bryden has built a career in the sector spanning almost 30 years. She started as a mortgage broker and has since held a variety of senior roles at several of the country’s largest lenders. Here’s her advice for aspiring starters.
Do your research
“Introducing the homebuying process. From agreement in principle to mortgage approval and completion. The Lloyds First-Time Hub includes free guides and access to expert-led online sessions to break down the jargon and make things clearer.”
Ask for advice
“Speak to a mortgage professional early, don’t wait until you think you’ve saved enough or found your dream home. They can help explain what you can afford, typical costs and what to expect along the way. Lloyds offers video appointments at times that suit you.”
Explore your options
“It’s important to know what support is available. A mortgage expert will show you options you may not have considered and guide you on ways to build the money faster. Schemes such as shared ownership and low deposit mortgages can make buying more affordable than you might think.”