Zoopla has revealed Britain’s most popular locations for first-time buyers, and how much it would cost to buy their first home in each area.
The London Borough of Barking and Dagenham was revealed as the “most in-demand” location for a first home. Within this borough, a £300,000 three-bed terraced house was the average property for these buyers. The site calculated that buyers in this area would need a deposit of £45,000 and an income of £56,667 to buy.
The second most popular area was the Borough of Tower Hamlets, where Zoopla calculated that first-time buyers need to earn £80,278 and have a deposit of £63,750 for a home valued at £425,000. In third place was the Borough of Newham, where first-time buyers were most likely to purchase a two-bedroom flat priced at £340,000.
Outside of London, Leicester was the most popular location for first-time buyers in the East Midlands. The average home value enquired about was £175,000, which would require a £26,250 deposit.
Bristol was the most popular area in the South West, with an average property value of £225,000 and a £26,250 deposit). In Scotland, Midlothian was the most popular location, with an average price of £145,000 with a £26,250 deposit.
The property site said that the most popular areas for first-time buyers “all share one common characteristic”, that they’re in close proximity with the UK’s biggest cities but are “still relatively affordable”.
To compile these results, Zoopla analysed demand from first-time buyers over the past three months and ranked locations with the highest percentage of demand submitted from those who identified as first-time buyers.
It also researched the average property value that first-time buyers look for in each location, the most popular property type searched for by first-time buyers, as made calculations for the typical deposit and average income needed to service an 85% loan-to-value mortgage.
Richard Donnell, research director at Zoopla, comments: “First time buyers are the largest buyer group in the housing market, accounting for close to two in every five sales.
“Low mortgage rates and increased availability of higher loan to value mortgages have supported the growth in first time buyer numbers over the last five years.”
He added: “Much of the growth in first time buyer numbers has been recorded in regional housing markets where the cost of buying remains attractive.
“Our analysis shows that first time buyers are seeking out the most affordable areas which deliver the best value for money in terms of accessibility and property type and size. In the highest priced markets, first time buyers are seeking two bed homes but across large parts of the country first time buyers are seeking out three bed homes.”