The lender has analysed the average price paid by people buying their first home in areas across the country to help others choose an affordable location. And it has also revealed its top expert tips for aspiring homeowners.
Topping the list is East Ayrshire, where the typical price paid for a first home is just shy of £150,000. But the research has also uncovered other locations in various regions where prices are more realistic for first-time buyer budgets.
Indeed, Lloyds also revealed the average age of a typical first-time buyer is 32 – but in some areas it can be as low as 27 thanks to affordable house prices.
It highlights, whilst there can be many challenges facing first-time buyers, there are still many areas where climbing onto the property ladder is more achievable.
And the list is being revealed on the day that Lloyds opens applications for its new £5,000 deposit mortgage, available on homes up to £300,000. The mortgage is aimed at helping first-time buyers who may otherwise struggle to raise funds without financial support from family.
What are the top 10 most affordable areas in the UK for first-time buyers?
The top spot goes to East Ayrshire in Scotland where the average first-time buyer price is £147,353. The area is well connected to Scotland’s central belt, with direct routes into Glasgow and nearby employment hubs.
Scotland features heavily in the list, as do locations in the North of England where prices are below the UK average.
(Source: Lloyds)
Amanda Bryden, head of mortgages at Lloyds, said its research showed there were still genuine pockets of value for first time buyers, especially those willing be flexible and open minded about locations.
She said: “Lower deposit options, such as our new £5k deposit mortgage, could help some people get on the ladder years earlier than they might expect.
“Speaking to a mortgage expert early can help. It gives you a clearer picture of what you can comfortably afford, and the confidence to make choices that feel right for you, whatever the wider market might be doing.”
What are the most affordable areas in each UK region?
Lloyds research has also pinpointed an area in each region where prices are most affordable, to help those who would prefer to stay more local.
In Wales it’s Merthyr Tydfil, with homes there costing an average of £156,498. In Northern Ireland it’s Mid and East Antrim, where a first home typically comes with a price tag of £175,308.
For those based in England the most affordable place is Blackpool in the North West, where people buying their first home pay £150,780 on average.
In Scotland it’s East Ayrshire, which is covered above. For those keen to base themselves in London the most affordable homes are in Barking and Dagenham, with an average first-time buyer price tag of £363,748.
(Source: Lloyds)
Amanda’s top tips for first-time buyers
Lloyds mortgage expert Amanda Bryden has built a career in the industry that spans almost 30 years. She started as a mortgage broker and has since filled a variety of senior roles across several of the country’s biggest lenders. Here’s her advice for budding first-time buyers.
Do your research
“Get familiar with the homebuying process. From an Agreement in Principle to mortgage approval and completion. The Lloyds First-Time Hub includes free guides, and access to expert-led online sessions, to help explain the jargon and make things clearer.”
Seek advice
“Speak to a mortgage professional early on, don’t wait until you think you’ve saved enough or found you dream home. They can help explain what you can afford, typical costs and what to expect along the way. Lloyds offers video appointments at times that suit you.”
Explore your options
“It’s important to know what support is available. A mortgage expert will show you options you might not have considered and guide you on ways to build up the funds quicker. Schemes like Shared Ownership and low-deposit mortgages can make buying more affordable than you might think.”
