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The UK's most affordable locations for first-time homebuyers
More than six out of ten first-time purchasers in the UK shared the cost of the average home, which increased 13% to £302,010 last year.
According to a new Halifax analysis, the number of first-time buyers decreased by 11% to 362,461 in 2022 from the year before.
With average prices hovering around £171,425, Northern Ireland has continued to be the cheapest location to buy a home since 2017. The North East region was next, with houses costing on average £175,091.
Unsurprisingly, London, where the typical house cost £518,900, was on the higher end of the scale. The average down payment for a home in the capital was £125,378; this amount would almost have been sufficient to purchase a home elsewhere in the UK.
Scotland saw the biggest increase in the amount needed for a deposit, going from £38,468 to £41,442 last year, an increase of 8%.
“Over 362,000 people got on the property ladder in 2022, with first-time buyers now accounting for over half of all home loans. Today, getting your own place for the first time will likely mean paying over £300,000 for that new home, and putting down, on average, a £62,000 deposit,” Kim Kinnaird, mortgages director at Halifax, said.
“The overall level of first-time buyers remains high, with the total number securing a home in 2022 higher than in any year other than 2021 — where we saw record demand — and before that, the peak seen in 2006."
Compared to the record highs reached in 2021, the number of first-time purchasers decreased in all countries and regions last year.
The South East, South West, Wales, and Northern Ireland experienced the largest drops last year, all falling by 12%. This was to be predicted, given the extremely strong demand anticipated in these regions in 2021.
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For further information, please contact Holly Stevens in the Residential Property team on York 01904 716000 or email holly.stevens@warekay.co.uk
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