Kilmarnock named cheapest area for a first home

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Average first-time buyer monthly mortgage payment still £350 more than five years ago, as Kilmarnock named cheapest area for a first home

  • The latest data from Rightmove’s weekly mortgage tracker shows that the average first-time buyer mortgage payment is still £350 more each month, or 59% higher, than five years ago despite market improvements
  • A typical first-time buyer is currently paying a mortgage of £940 per month, compared with £590 per month five years ago, however, payments are still £155 lower than the peak in July 2023
  • Average wage growth has outpaced first-time buyer price rises, increasing borrowing power, however affordability remains very stretched:
    • Average earnings have risen by 30% in the last five years, versus 17% for first-time buyer prices
    • In London, the average first home is 6.8 times the national average annual wage of two people, compared with 1.8 times for a property in the North East
    • The research highlights challenges for single first-time buyers, with more than half of regions out of reach for someone on their own with an average wage, even with a 10% deposit
  • As some movers look to cheaper areas as affordability remains stretched, Kilmarnock is currently the lowest-priced area for first-time buyers, with the price tag of a typical first home under £100,000

New analysis from the UK’s largest property website Rightmove, reveals that a typical monthly mortgage payment on a first-time buyer property is £350 more than five years ago.

The average monthly mortgage payment on a typical first-time buyer property, a two-bedroom or fewer home, is now £940 compared to £590 in 2020, despite improvements in the mortgage market from last year. However, the average payment is still £155 lower than the peak in 2023.

The analysis assumes a first-time buyer has been able to raise a 20% deposit and has opted to spread the cost of the mortgage over 30 years.

Average wage growth has outpaced the rise in average asking price for a typical first-time buyer property. Average earnings have grown by 30% in the last five years, versus a 17% increase in the price of a typical first-time buyer home.

This has slightly increased the borrowing power of first-time buyers, which is typically an average of 4.5 times a single or joint income from a mortgage lender.

However, affordability remains very stretched, which is why Rightmove has welcomed proposals from the mortgage regulator that they are considering responsible ways to enable first-time buyers to borrow more.

In London, an average first-time buyer type property is 6.8 times the national average wage of two people, now priced at £500,066.

This compares with the North East, where a typical first home is 1.8 times an average joint income at £132,854.

The analysis also highlights the particular challenge for any first-time buyers trying to purchase a home on their own.

In more than half of regions, a first-time buyer on a typical salary would not be able to afford a typical first home on their own, if they were only able to borrow 4.5 times their salary, even if they’d saved up a 10% deposit.

Region Average asking price Loan-to-Income multiple (single income) Loan-to-Income multiple (joint income) Loan-to-Income multiple (single income, minus a 10% deposit) Loan-to-Income multiple (joint income, minus a 10% deposit)
London £500,066 13.5 6.8 12.2 6.1
South East £292,414 7.9 4.0 7.1 3.6
East of England £272,035 7.4 3.7 6.6 3.3
South West £249,379 6.8 3.4 6.1 3.0
West Midlands £193,816 5.2 2.6 4.7 2.4
East Midlands £193,115 5.2 2.6 4.7 2.4
Wales £180,452 4.9 2.4 4.4 2.2
North West £175,557 4.8 2.4 4.3 2.1
Yorkshire and The Humber £174,303 4.7 2.4 4.2 2.1
Scotland £140,783 3.8 1.9 3.4 1.7
North East £132,854 3.6 1.8 3.2 1.6

*Even with a 10% deposit, the average price of a typical first-time buyer home in the East Midlands and above, is more than 4.5 x the national average income, which is typically what someone is able to borrow from a lender

For those who may be considering lower-priced areas that they can move to, Kilmarnock has been named the cheapest area for a first-time buyer to get onto the property ladder.

The average asking price for a typical first-time buyer home in Kilmarnock, Ayrshire is £84,325. Greenock in Inverclyde is second on the list at £88,862, and Grimsby in Lincolnshire is third at £93,427.

Rightmove’s mortgage expert Matt Smith says: “Higher mortgage rates mean home-movers need to consider how much they can afford to pay each month on a monthly mortgage, even if they can meet the asking price of a home. Another measure of affordability which is restricting some first-time buyers from getting onto the ladder is how much they can borrow. It’s encouraging to see that the regulator is considering how they may be able to enable first-time buyers to borrow more in a responsible way, as we think this will help to unlock more opportunity, particularly for those with smaller deposits.”

Cheapest locations for first-time buyers 

Ranking Area Average asking price for a first-time buyer home Average asking price increase year-on-year
1 Kilmarnock, Ayrshire £84,325 -1.0%
2 Greenock, Inverclyde £88,862 +0.7%
3 Grimsby, Lincolnshire £93,427 -1.2%
4 Blackpool, Lancashire £93,711 0.0%
5 Middlesbrough, North Yorkshire £95,473 +0.8%
6 Hartlepool £99,525 +10.7%
7 Paisley, Renfrewshire £99,570 +2.3%
8 East Kilbride, Glasgow £100,814 +4.1%
9 Ayr, Ayrshire £101,391 +1.0%
10 Burnley, Lancashire £102,848 +6.2%

Rightmove

UK Property news updates shared directly from Rightmove PLC - the country's leading property portal.

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