The most and least affordable places to buy your first home in Britain
New data has revealed the most and least affordable areas for first-time buyers in each region of Britain.
The latest Affordability Report from Nationwide found that affordability has improved across all regions in Great Britain over the past year, which is great news for first-time buyers looking to get on the property ladder.
The report compared house price and earnings data to compare the highest and lowest house price to earnings ratios (HPERs) for first-time buyers in Great Britain by local authority.
It found that home prices vary significantly based on region, with first-time buyers in London paying far more than those in Scotland or the North of England.
A total of 70% of local authorities saw affordability improve over the last year, and some of the biggest improvements were seen in London, where property prices have declined or grown more slowly than elsewhere in the UK.
Despite this, London remains far less affordable than most other places in Britain, and the ten local authorities with the highest deposit requirement are all within the capital.
Most affordable areas for first-time buyers
The most affordable place for first-time buyers was Inverclyde in Scotland, where an average first-time buyer house will only set you back 2.3-times the average earnings in the area.
Burnley was the most affordable place to buy a first home in the North West, as was Hartlepool in the North, and Kingston upon Hull in Yorkshire.
The most affordable place in the South West to buy a first home was Swindon, while London’s Bromley borough topped the list of the most affordable areas in London.
Below are the most affordable areas to buy a home in each region of Great Britain, based on house price to earnings ratio (HPER) for first-time buyers.
| Region | Local authority | HPER |
|---|---|---|
| Scotland | Inverclyde | 2.3 |
| N West | Burnley | 2.8 |
| North | Hartlepool | 2.9 |
| Yorkshire | Kingston upon Hull | 3.0 |
| Wales | Merthyr Tydfil | 3.3 |
| W Mids | Stoke-on-Trent | 3.4 |
| E Mids | West Lindsey | 3.7 |
| East Anglia | Great Yarmouth | 4.3 |
| Outer SE | Gosport | 4.7 |
| Outer Met | Surrey Heath | 4.8 |
| S West | Swindon | 4.8 |
| London | Bromley | 6.2 |
Least affordable areas for first-time buyers
The least affordable local authority in Great Britain is unsuprisingly found in London. The borough of Kensington & Chelsea has a HPER of 13.9, making it by far the most expensive place to buy a first home in Great Britain.
Oxford also topped the unaffordability chart for the Outer South East region, and Cambridge was ranked the least affordable place to live in East Anglia.
York and Cardiff are the least affordable places to buy a first home in Yorkshire and Wales, respectively, while the highest priced area for first-time buyers in the West Midlands is Stratford-upon-Avon.
Below are the least affordable areas to buy a home in each region of Great Britain, based on house price to earnings ratio (HPER) for first-time buyers.
| Region | Local authority | HPER |
|---|---|---|
| London | Kensington & Chelsea | 13.9 |
| Outer SE | Oxford | 8.0 |
| East Anglia | Cambridge | 7.3 |
| Outer Met | Spelthorne | 7.0 |
| S West | South Hams | 6.9 |
| E Mids | Derbyshire Dales | 5.7 |
| W Mids | Stratford-on-Avon | 5.6 |
| N West | Trafford | 5.5 |
| Yorkshire | York | 5.4 |
| Wales | Cardiff | 5.3 |
| Scotland | Midlothian | 4.9 |
| North | Westmorland & Furness | 4.1 |
Affordability is improving for first-time buyers
The general picture of the UK property market is looking good for first-time buyers, as HPER continues to improve across the board.
“With price growth well below the rate of earnings growth and a steady decline in mortgage rates, affordability constraints have eased somewhat over the past year, helping to underpin buyer demand,” said Nationwide senior economist Andrew Harvey.
“Indeed, the first-time buyer share of house purchase activity was above the long run average, supported by easier credit availability, with the share of high loan-to-value lending (i.e. with a deposit of 15% or less) reaching its highest level for over a decade.”
“First-time buyer activity over the last year was around 20% higher than 2024 levels,” Harvey said.
Harvey noted the improvement in first-time buyer HPER is a continuation of the trend seen over recent years, with the ratio now slightly below its 20-year average.
“Consequently, this suggests it is a little easier for prospective buyers to save for a deposit, although it is still particularly challenging for those in the private rented sector, given rental increases in recent years,” he said.
