Unveiled: Affordable Market Towns Ideal for First-Time Buyers – Alongside the Most Costly Ones
In the current housing market, finding an affordable home can be a challenge for first-time buyers. However, recent data from Lloyds Bank has highlighted some market towns in the UK that offer more affordable housing options compared to the national average.
Hitchin, a market town in Hertfordshire, stands out as the most expensive market town for first-time buyers, with an average house price of £410,366. On the other hand, Leek in the West Midlands is the least expensive location, with an average house price of £191,359.
The top 10 cheapest market towns for first-time buyers in the UK are:
- Immingham, Yorkshire and the Humber - £176,918
- Leek, West Midlands - £191,359
- Chesterfield, East Midlands - £198,054
- Northallerton, Yorkshire and the Humber - £201,628
- Selby, Yorkshire and the Humber - £202,092
- Driffield, Yorkshire and the Humber - £203,160
- Boston, East Midlands - £211,404
- Buxton, East Midlands - £224,896
- Newport, South Wales - £227,784
- Sleaford, East Midlands - £229,197
These prices reflect the average paid by first-time buyers and show that market towns in regions like Yorkshire, the Midlands, and parts of Wales offer some of the most affordable housing options in the UK.
Four other market towns from the West Midlands region are included in the top 10 list: Boston, Buxton, Grantham, and Altrincham, with average prices of £211,404, £224,896, £230,464, and £404,864, respectively.
First-time buyers in Chesterfield face an average price of £198,054, while those in Beverley, Yorkshire and the Humber, and Newport, Wales have both experienced a 31% increase in average house prices since 2020.
On average, the 10 market towns where house prices have grown the most since 2020 have seen an average increase of 26%. Newmarket, in the East of England, shows the biggest spike, with prices increasing by 54% over the last five years.
Lenders have strict eligibility criteria, including affordability checks and examination of credit files. A change in credit score or salary can help secure better mortgage rates. It's also beneficial to look for new mortgage deals well before the end of a fixed deal to lock in current rates. A larger deposit can help secure lower mortgage rates, and a lower loan-to-value ratio (LTV) can provide access to better mortgage rates.
Macclesfield, in the North West, has experienced a significant increase in average house prices for first-time buyers since 2020, with prices rising from £211,344 to £296,255. Prices in Goole, Yorkshire and the Humber, have risen by 47% over the same period.
In conclusion, the data from Lloyds Bank provides valuable insights for first-time buyers looking for affordable housing options in the UK. Market towns in Yorkshire, the Midlands, and parts of Wales offer some of the most affordable housing options, with Leek being the least expensive location. It's essential for first-time buyers to research and understand the market, their eligibility, and the factors that can impact mortgage rates to secure the best deal possible.
Investing in real estate, particularly in market towns, can be a beneficial strategy for personal finance, especially for first-time buyers seeking affordable housing options. For instance, Leek in the West Midlands is a less expensive location compared to Hitchin, with an average house price of £191,359 versus £410,366. Moreover, a significant number of market towns in Yorkshire and the Midlands, such as Immingham, Chesterfield, Northallerton, and Boston, offer reasonably priced housing when compared to other regions of the UK.
