Hope for homebuyers: New data reveals the best value UK locations for first-time buyers

Newly unveiled datai by St. Modwen Homes sheds light on which UK cities allow first-time buyers to own their first home on a budget, and which locations provide less bang for your buck.

In a time where homeownership feels out of reach for many, Google searches for ‘mortgage monthly payment calculator’ have surged by 22% year-on-yearii. Hopeful homeowners are desperately searching to see what they can afford, but are often left disappointed.

Luckily, new research conducted by national and award-winning housebuilder, St Modwen Homes, has uncovered a light at the end of the tunnel for aspiring property buyers.

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The analysis of the UK’s property market has not only identified cities with the most affordable monthly mortgage payments, but also highlights the untapped potential for property hunters to own their dream home without breaking the bank.

What’s more, the data has also unveiled the most expensive cities for first-time buyers, highlighting those areas to avoid – with London (£3,833.76 per month), Oxford (£3,250.41 per month) and Bath (£3,239.43 per month) taking the top penny-pinching positions.

Discover the top five most budget-friendly destinations for first-time buyers:

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  1. Stoke-on-Trent – £950.16 per month

    Stoke-on-Trent takes the top spot for the cheapest average monthly mortgage payment in the UK, coming in at just £950.16. Known as the “Potteries,” homes in Stoke-on-Trent are not only more affordable than other UK locations, but also offer great local amenities and attractions – including a superb variety of restaurants, pubs and bars.

  2. Swansea – £1,082.99 per month

    Nestled along the Welsh coast, Swansea has earned its place as the second most affordable location in the UK when it comes to monthly mortgage payments. This seaside city offers an ideal mix of urban life and coastal country living – providing a fresh take on the typical metropolitan lifestyle. The balance between the rural scenery and city style amenities – including comedy clubs, leisure centres, and a thriving shopping scene – makes it an ideal place for buyers wanting the best of both worlds. Plus, the price is a great bonus!

  3. Liverpool – £1,163.39 per month

    Rather surprisingly, the iconic home of The Beatles comes in as the third most affordable mortgage location in the UK. Liverpool has a rich history and exciting cultural scene – with iconic attractions such as the Albert Dock, Liverpool Waterfront, and Anfield Stadium right on your doorstep. Liverpool is a bustling city that is full of life and would make a happy home for anyone seeking to live in a dynamic and lively location.

  4. Wolverhampton – £1,229.40 per month

    Wolverhampton, number four on the list, is a Midlands city which offers a unique mix of culture and history to its residents. With the thrill of the Wolverhampton Grand Theatre, the heritage of Wightwick Manor, and the hustle and bustle of the local nightlife, variety truly is the spice of life for those living in Wolverhampton. The city also has fantastic transport links to other cities such as Birmingham and London, making it a great location for commuters.

  5. Derby – £1,304.57 per month

    Derby is not only a reasonably priced city to live in, it’s also surrounded by natural beauty – including the Peak District National Park, Markeaton Park, and Alvaston Park. These open green spaces make Derby a great location for anyone looking to live somewhere with easy access to the great outdoors. Plus, with exciting venues in the city, including the theatre, the Derby Quad, and the Pride Park Stadium – you can catch a show, concert, or game just a stone’s throw away.

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For those dreaming of locations to live that might initially seem financially out of reach, there’s no need to despair. Luckily, there are ways that can help bring down mortgage payments, such as utilising first time buyer schemes including the 5% deposit contribution.

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Jo Winston, Sales and Marketing Director at St. Modwen Homes, comments:

“Getting onto the property ladder can often feel like an uphill battle for most first-time buyers, particularly when you factor in current interest rates.

“This research has been conducted with first-time buyers in mind, to help them easily understand which cities have the most potential in terms of affordability and desirability – ultimately helping them to secure their dream home.

“With that in mind, we aim to support buyers as best as we can, and that’s why we offer different buying schemes such as our 5% deposit contribution. This allows purchasers to bring down their monthly mortgage payments, as they won’t need to borrow as much money from their lender.”

To find out any more information about St. Modwen Homes or the schemes available to first-time buyers, please visit here.

iData has been calculated by taking the average house prices across key cities from Rightmove in October 2023, based on a 10% deposit, 6.16% interest rate over a 30 year term. This information was then inputted into Money Helper’s mortgage calculator: https://www.moneyhelper.org.uk/en/homes/buying-a-home/use-our-mortgage-calculator

iiYoY increase for the term ‘mortgage monthly payment calculator’ taken from Google Keyword Planner, with a date range of October 2022 – September 2023.

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