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The Most & Least Affordable Locations for First-Time Buyers Revealed

An online mortgage broker has conducted new research to find out the most and least affordable locations in the UK for first-time buyers.

Following on from the Government’s recently launched First Homes scheme, online mortgage broker Mojo Mortgages has released their very own report looking at the most affordable and unaffordable areas in the country.

The online broker looked at various factors affecting home affordability in June 2021, including house prices, mortgage repayments, average annual salary and monthly take-home pay to compose their First Homes scheme affordability index.

Mojo’s report found that based on the average monthly mortgage payment (using a 10% deposit with a mortgage term of 30 years at 3% interest) compared to income, Oxford was the least affordable location in England for first-time buyers.

The average property price in Oxford is £540,005, and average annual salary is £31,232. Taking these figures into account, Mojo found that the average monthly mortgage repayment took up 49.37% of a couple’s take-home pay.

Other cities such as Bath (47.65%) and London (47.12%) followed close behind, highlighting the difficulty of getting onto the property ladder in these desirable areas.

The Ten Least Affordable Areas in England:

  • Oxford (49.37%)
  • Bath (47.65%)
  • London (47.12%)
  • Reading (38.98%)
  • Poole (38.72%)
  • Cambridge (38.49%)
  • Brighton (37.19%)
  • Slough (36.68%)
  • Cheltenham (36.38%)
  • Exeter (35.03%)

In contrast, Mojo found that Bradford was the most affordable for first-time buyers.

With an average property price of £145,981 and an average annual salary of £28,790, Bradford buyers would be looking at a 14.30% in terms of monthly mortgage payments as a percentage of income – making it the lowest in England.

Blackpool (15.94%) and Stoke-on-Trent (17.35%) followed closest behind.

The Ten Most Affordable Areas in England

  • Bradford (14.30%)
  • Blackpool (15.94%)
  • Stoke-on-Trent (17.35%)
  • Sunderland (17.56%)
  • Middlesbrough (17.70%)
  • Hull (17.72%)
  • Carlisle (17.82%)
  • Durham (18.10%)
  • Liverpool (18.56%)
  • Bolton (19.19%)

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