Aberdeen has been named as the most affordable city for first-time buyers, while Carlisle is the cheapest for renters, according to an analysis by Rightmove.
The property website found that the average asking price for a two-bedroom or smaller property in Aberdeen is £102,601. With a 20% deposit, a typical first-time buyer in Aberdeen could expect to pay around £406 per month in mortgage costs.
Meanwhile, the average rent in Carlisle is £607 per month. At the other end of the spectrum, St Albans in Hertfordshire, known for its historic cathedral and pubs, as well as its commuter links to London, was named as the priciest city for first-time buyers outside of London, followed by Cambridge and Winchester.
Oxford was identified as the most expensive city to rent outside of London. The study examined over 50 cities across Britain, making certain assumptions about mortgage costs. It assumed that first-time buyers in Scotland and Wales had a 20% deposit and were taking out a five-year fixed-rate mortgage at average rates.
For England, it assumed that first-time buyers had a slightly higher deposit, at 25%, reflecting industry averages for deposit sizes, and were also taking out a five-year mortgage. After Aberdeen, Bradford follows closely as the second most affordable option, where homes go for an average of £107,929, while Sunderland ranks third with properties averaging at £111,263.
Renting a modest two-bedroom or smaller property has become significantly more expensive, soaring by 39% over the past five years, in stark contrast to the 19% rise in purchasing costs for similar-sized homes, Rightmove reports.
Tim Bannister, Rightmove’s property expert, commented: “These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates.”
He added: “Longer mortgage terms are becoming more common as a way to improve overall affordability and reduce monthly payments, though first-time buyers should be aware of what they are paying in interest compared with their actual mortgage.”
Here are the 10 cheapest cities to get on the property ladder according to Rightmove, with the average asking price for a typical first-time buyer home and the typical monthly mortgage payment, assuming a 35-year mortgage term:
1. Aberdeen, £102,601, £406.
2. Bradford, £107,929, £400.
3. Sunderland, £111,263, £413.
4. Carlisle, £111,268, £413.
5. Preston, £112,273, £416.
6. Hull, £113,920, £423.
7. Dundee, £116,191, £460.
8. Stoke-On-Trent, £117,113, £434.
9. Durham, £125,957, £467.
10. Doncaster, £128,062, £475.
Here are the 10 most expensive cities to get on the property ladder according to Rightmove, with the average asking price and the typical monthly mortgage payment, assuming a 35-year mortgage term:
1. London, £501,934, £1,862.
2. St Albans, £391,964, £1,454.
3. Cambridge, £361,429, £1,341.
4. Winchester, £344,638, £1,278.
5. Oxford, £338,085, £1,254.
6. Brighton, £335,402, £1,244.
7. Bristol, £280,112, £1,039.
8. Chelmsford, £262,522, £974.
9. York, £244,834, £908.
10. Edinburgh, £239,028, £946.
Here are the cheapest cities to rent, according to Rightmove, with the average advertised rent per month:
1. Carlisle, £607.
2. Hull, £638.
3. Sunderland, £648.
4. Stoke-On-Trent, £701.
5. Doncaster, £707.
6. Bradford, £714.
7. Wrexham, £754.
8. Lancaster, £764.
9. Aberdeen, £775.
10. Preston, £787.
Here are the most expensive cities to rent, according to Rightmove, with the average advertised rent per month:
1. London, £2,264.
2. Oxford, £1,561.
3. Cambridge, £1,533.
4. St Albans, £1,509.
5. Brighton, £1,468.
6. Bristol, £1,336.
7. Winchester, £1,332.
8. Edinburgh, £1,310.
9. Chelmsford, £1,300.
10. Milton Keynes, £1,239.
