Getting on the property ladder is an aspiration for many, yet with sky high-prices and stagnating salaries, it has never been harder to get on the property ladder.
However, while the situation is bleak in London and a selection of cities across the country, it is not all doom and gloom for would-be first-time buyers in the UK.
Online mortgage broker, Mojo Mortgages, have conducted research revealing the best and worst places for first-time buyers to enter the property market, detailing the amount of mortgage required compared to an average salary in the area.
Commenting on the findings, Richard Hayes, CEO and Co-Founder of Mojo Mortgages, said: “Getting on the property ladder as a first-time buyer is notoriously difficult unless you happen to have a few grand stashed away in your savings account or can ask the Bank of Mum and Dad to help with the deposit.
“Our first-time buyer index gives potential homebuyers the chance to see where they could buy, and what’s affordable for them in some of the most popular towns and cities in the UK.”
In a bid to find the best place to buy as a first-time buyer, Mojo Mortgages cross-referenced several important factors such as the price per square metre, bills, cost of travel and of course the average monthly salary. Once these facets have been considered, Mojo identified the percentage of income that would be taken up by a mortgage.
From their research, Newcastle came out as the best place for first-time buyers. As previously mentioned on Residential People, buying in the North is a good investment; as such, Newcastle’s cheap price per sq.m (£1,650) and average mortgage payment costing under 30% of a buyer’s income saw the city come out ahead of second-place city, Aberdeen, which had a price per sq.m of £2,250.
Unsurprisingly London was found to be the worst city to buy in as a first-timer with Mojo Mortgages identifying that you would require 45% more than an average monthly net salary to be able to afford mortgage repayments, while the price per sq.m was a staggering £13,068.95.
Along with London, Derby, Northampton and Liverpool were also identified as some of the worst areas to buy a property, due to relatively high prices when compared to the lower regional salaries.
A full list of Mojo Mortgages’ first-time buyer data can be found here.