The Best Locations for First Time Buyers Revealed

In its latest analysis of the UK property market, hybrid estate agent eMoov.co.uk has highlighted the best locations for first time buyers in England, and where they should avoid.

Using Land Registry figures, eMoov has mapped the average first time buyer house price across each English county and each of London’s boroughs, as well as calculating the average increase in value since 2012.

The study found that first time buyers are now paying an average of just over £196,000 for their home. However, in the last four years, the average price paid across England by those getting onto the property ladder has risen by £42,451.

This substantial 28% increase beats the average rate of growth for England as a whole, where the typical house price has risen by 26% over the same period, highlighting the ever-growing obstacle facing first time buyers.

But it’s worse news for those hoping to get onto the ladder in London, where the average first time buyer house price is a whopping £462,602, up by 54% on 2012.

So where should first time buyers look to buy, where should they avoid, and which location has seen the greatest increase in house prices in the past four years?

England 

Average first time buyer prices across England

At just £86,116, County Durham is home to the lowest house price for first time buyers. Although low demand has caused price drops in the area, this has benefitted those trying to buy their first home.

However, those thinking of buying in County Durham should be aware that its poor performance is notable – prices have risen by just 3% (£2,600) since 2012, the lowest rate across England and a far cry from the national average.

Naturally, the City of London and Greater London are the most expensive counties for first time buyers. However, the capital’s commuter zone also proves out of reach for many buyers. Surrey (£323,973), Hertfordshire (£305,043), Berkshire (£292,227), Oxfordshire (£286,962) and Buckinghamshire (£286,511) make up the top five most expensive counties for first time buyers outside of London, with each location seeing house price growth of between £80,000-£96,000 since 2012 – the greatest increases outside of the M25.

London 

London’s first time buyer house prices

Living in London comes at a high price, even in the most affordable boroughs. First time buyers looking for a home in the capital will find that the average price across even the cheapest boroughs is still much higher than the UK average.

At £254,600, Barking and Dagenham is the most affordable borough for first time buyers. Havering comes in second place (£281,836), followed by Bexley (£285,464), Croydon (£301,001) and Sutton (£312,978). In 2012, the average first time buyer house price for these boroughs came in at under £200,000, but each location has experienced an increase of between £95,000-£118,000 in the last four years.

Unsurprisingly, Kensington and Chelsea (£1.1m) is the most expensive spot in the capital for first time buyers. Westminster (£906,882), the City of London (£711,009), Camden (£669,020) and Hammersmith & Fulham (£690,296) complete the top five.

The founder and CEO of eMoov, Russell Quirk, comments on the findings: “First time buyers are paying almost as much as second and third steppers in actual price terms, yet the percentage increase in first time buyer properties is tracking at even greater than regular house prices. It really does highlight the issue facing the nation’s next generation of aspirational homeowners.

“How the Government expects anyone to get on in life when the first hurdle they face is all but unobtainable, to begin with, is beyond me, especially in London. Over 90% of the capital’s boroughs have seen the price paid by first time buyers increase by more than £100,000 in just four or so short years.”

He urges: “We must address this issue and find a way to bring homeownership back in reach of the average homebuyers, not just in London, or the surrounding commuter counties, but to the whole of England.”

Landlords, remember that many young people in the UK are stuck in rental properties. Ensure that you offer a safe and suitable home to hopeful first time buyers, and set a reasonable rent price.