Ayrshire in Scotland is the most affordable area in the UK for first-time buyers, according to a new study from L&C, with the top 10 most expensive areas all in London.
L&C analysed GOV.UK data on average first-time buyer house prices across the UK as well as median earnings to work out the best and worst regions to buy an affordable home.
East and North Ayrshire topped the list of most affordable areas to buy a home, with the lowest first-time buyer house price in the whole of the UK of just £103,453. The median monthly salary for this area is £2,268, which is only £54 lower than the overall UK average monthly salary of £2,322 and gives a price-to-income ratio of 3.8.
An expert from L&C Mortgages said: “Identifying regions with favourable house-to-income cost ratios shows just how regionalised affordability can be and highlights how some first-time buyers may find it easier to get on the property ladder than others.
"Scotland features high up in the list of regions offering numerous areas with more affordable housing prices when compared to earnings. On this metric it looks to have a solid status as the top UK area for affordability for prospective homeowners.
”Other areas in Scotland which feature among the top 10 locations for first-time buyers include South Lanarkshire and the regions of Inverclyde, East Renfrewshire and Renfrewshire, both achieving a ratio of 4.39. In England, the North East dominates the table of affordable areas to buy, with Durham, Hartlepool, Stockton and Tees and Sunderland all featuring in the top 10 locations for first-time buyers.
Capital the least affordable place to buy
The two London boroughs of Kensington and Chelsea and Hammersmith and Fulham topped the list as the least cost-effective locations for first-time buyers, with an eye-watering median first-time buyer house price of £792,899. Given that average monthly earnings here are £3,261, owning a home in these areas is likely to remain an impossible dream for the vast majority of buyers.
In fact, all the top ten most expensive areas for first-time buyers to get on the property ladder are located in the capital. They include Westminster, Camden and City of London, Haringey and Islington, Hackney and Newham, Brent, Hounslow, and Richmond upon Thames, Barnet, Redbridge and Waltham Forest and lastly Enfield.
The L&C spokesman said: “Unsurprisingly London dominated the list of areas where first time buyers may find it hardest to get on the ladder, highlighting the mismatch between house prices and average earnings.”
Other areas of the UK where it is expensive to buy include Brighton and Hove, East Surrey, Buckinghamshire County Council, West Essex, West Kent, West Surrey and Bristol.
