How much you need to be earning to buy a home in the most popular areas for first-time buyers

house in barking and dagenham
Barking and Dagenham is the most popular spot for first-time buyers (Picture: Getty)

London Borough of Barking and Dagenham has been named the most popular area in the UK for people buying their first home.

In this area, the average price of a property first-time buyers ask about is £300,000, with the most popular property type here a three-bedroom terraced home.

Those looking to buy in this area will likely need a £45,000 deposit and Zoopla reckons they’ll need to earn around £56,667 a year.

This information will either make you feel completely deflated or sort of hopeful. Maybe actually owning a property in London isn’t some distant pipedream?

All this intel comes from a new report from Zoopla, which reveals the most popular areas people are choosing to buy their first property, along with the average price of first-time buyers homes, deposits, and how much you’d need to be earning to afford a home in each spot.

Spoiler: You’ll need to be earning quite a bit to buy a place in London.

Despite this, London boroughs take the top spots on the most popular places list.

Zoopla analysed demand from first-time buyers over the past three months and ranked locations with the highest percentage of demand submitted from those identifying as first-time buyers.

Topping the list is the Borough of Barking and Dagenham, in second place is the Borough of Tower Hamlets, and in third place is the Borough of Newham.

Outside of the capital city, Leicester is the most popular location for first-time buyers in the East Midlands, where the average home value enquired about is £175,000, and a £26,250 deposit is required.

The top areas in the UK for first-time buyers:

1. Barking and Dagenham

Average price of first-time buyer homes: £300,000

Most popular property type: Three-bedroom terraced house

Average deposit: £45,000

Salary needed: £56,667

2. Tower Hamlets

Average price of first-time buyer homes: £425,000

Most popular property type: Two-bed flat

Average deposit: £63,750

Salary needed: £80,278

3. Newham

Average price of first-time buyer homes: £340,000

Most popular property type: Two-bed flat

Average deposit: £51,000

Salary needed: £64,222

4. Reading

Average price of first-time buyer homes: £240,000

Most popular property type: Two-bed flat

Average deposit: £36,000

Salary needed: £45,333

5. City of Wolverhampton

Average price of first-time buyer homes: £145,000

Most popular property type: Three-bed semi-detached house

Average deposit: £21,750

Salary needed: £27,389

6. Thurrock

Average price of first-time buyer homes: £260,000

Most popular property type: Three-bed terraced house

Average deposit: £39,000

Salary needed: £49,111

7. Greenwich

Average price of first-time buyer homes: £340,000

Most popular property type: Two-bed flat

Average deposit: £51,000

Salary needed: £64,222

8. Luton

Average price of first-time buyer homes: £215,000

Most popular property type: Three-bed semi-detached home

Average deposit: £32,250

Salary needed: £40,611

9. Southwark

Average price of first-time buyer homes: £435,000

Most popular property type: Two-bed flat

Average deposit: £65,250

Salary needed: £82,167

10. Crawley 

Average price of first-time buyer homes: £255,000

Most popular property type: Three-bed terraced house

Average deposit: £38,250

Salary needed: £48,167

Top areas for first-time buyers in London:

1. Barking and Dagenham 

Average price of first-time buyer homes: £300,000

Most popular property type: Three-bedroom terraced house

Average deposit: £45,000

Salary needed: £56,667

2. Tower Hamlets

Average price of first-time buyer homes: £425,000

Most popular property type: Two-bed flat

Average deposit: £63,750

Salary needed: £80,278

3. Newham

Average price of first-time buyer homes: £340,000

Most popular property type: Two-bed flat

Average deposit: £51,000

Salary needed: £64,222

4. Greenwich

Average price of first-time buyer homes: £340,000

Most popular property type: Two-bed flat

Average deposit: £51,000

Salary needed: £64,222

5. Southwark

Average price of first-time buyer homes: £435,000

Most popular property type: Two-bed flat

Average deposit: £65,250

Salary needed: £82,167

6. Lambeth

Average price of first-time buyer homes: £400,000

Most popular property type: Two-bed flat

Average deposit: £60,000

Salary needed: £75,556

7. Hounslow 

Average price of first-time buyer homes: £350,000

Most popular property type: Two-bed flat

Average deposit: £52,500

Salary needed: £66,111

8. Hackney

Average price of first-time buyer homes: £475,000

Most popular property type: Two-bed flat

Average deposit: £71,250

Salary needed: £89,722

9. Lewisham 

Average price of first-time buyer homes: £350,000

Most popular property type: Two-bed flat

Average deposit: £52,500

Salary needed: £66,111

10. Islington

Average price of first-time buyer homes: £500,000

Most popular property type: Two-bed flat

Average deposit: £75,000

Salary needed: £94,444

Bristol (£225,000 value with a £26,250 deposit) tops the list in the South West.

North of the border in Scotland, Midlothian (£145,000 with a £26,250 deposit) is the most popular destination for those buying their first home.

All this research has been done to promote Zooploma, a series of guides and information designed to help first-time buyers get on the property ladder in 2020.

The first-time buyer hotspots in each region and the average cost:

  • East Midlands: City of Leicester, £175,000
  • East England: Thurrock, £260,000
  • London: Barking and Dagenham, £300,000
  • North East England: Newcastle upon Tyne, £120,00
  • North West England: Oldham, £120,000
  • Scotland: Midlothian, £145,000
  • South East England: Reading, £240,000
  • South West England: City of Bristol, £225,000
  • Wales Casnewydd: Newport, £140,000
  • West Midlands: City of Wolverhampton, £145,000
  • Yorkshire: Bradford, £110,000

Richard Donnell, Research Director at Zoopla, comments: “First-time buyers are the largest buyer group in the housing market, accounting for close to two in every five sales.

‘Our analysis shows that first time buyers are seeking out the most affordable areas which deliver the best value for money in terms of accessibility and property type and size. In the highest-priced markets, first-time buyers are seeking two-bed homes but across large parts of the country first-time buyers are seeking out three-bed homes.’

How to get involved in What I Own

What I Own is a Metro.co.uk series that takes you inside people's properties, to take an honest look at what it's like to buy a home in the UK.

If you own your home and would be up for sharing your story, please email whatirent@metro.co.uk.

You'll need to have pictures taken of your kitchen, living room, bathroom, and bedroom, plus a few photos of you in your room. Make sure you get permission for your housemates! You'll also need to be okay with sharing how much you've paid to live there and how you afforded the deposit, as that's pretty important.

If you're renting, you can take part too! What I Own runs alongside What I Rent, which is the same series but all about renting. Again, if you'd like to get involved just email whatirent@metro.co.uk.

 

MORE: What I Rent: Ros, £419 a month for a four-bedroom houseshare in Roehampton, London

MORE: What I Rent: Carolyn, Andy, and their three children, £575 a month for a four-bedroom house in Hull



source https://metro.co.uk/2020/02/05/most-popular-areas-first-time-buyers-12184068/
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