Planning to buy your first property in 2020, but not sure where to invest your hard-earned cash?
A new report revealed that first-time buyers who want to get the most bang for their buck should be focusing their attention on a UK university city known for it’s hardcore nightlife, brown ale and stottie cakes.
We are, of course, referring to Newcastle.
By cross-referencing the monthly mortgage cost in comparison to an area’s average income, digital broker Mojo Mortgages has created a first-time buyer affordability index, which found that Geordies are getting the best overall deal in the country.
The affordability index calculations also include monthly bills, commuting expenses and price per sq m, where Newcastle came in at £1,650 – cheaper than any other city in the UK.
What’s more, mortgage payments are just 29.05% of the overall average income, so there’s plenty of cash left to party with at Florita’s (or pop it into a savings account, perhaps).
If you fancy going even further north, Aberdeen in Scotland is the second most affordable place to buy, at £2,250 per sq – or head over to Belfast in Northern Ireland.
On the flipside, the most expensive areas are Derby, Northampton and Liverpool, where homes are pricey and salaries are low in comparison.
We know what you’re thinking: ‘Surely London is on that list too?’
Yes, the capital, notorious for its high property prices, is very much present and ranks very badly on the affordability scale.
If you’re hoping to get a flat in the city centre, you need to earn 45% more than the average salary to be able to keep up with mortgage payments.
To put that another way: the price per sq m is an average of £13,068.95, nearly eight times higher than Newcastle.
In fact, according to the research, London is actually the worst place to buy a property (surprise, surprise).
Well… renting isn’t all bad, right?
The 10 worst places in the UK to buy a property as a first-time buyer
- London
- Derby
- Northampton
- Brighton
- Liverpool
- Luton
- Manchester
- Bristol
- Edinburgh
- Leicester
The 10 best places in the UK to buy a property as a first-time buyer
- Newcastle
- Aberdeen
- Belfast
- Stoke-on-Trent
- Hull
- Coventry
- Southampton
- Bournemouth
- Cardiff
- Leeds
‘Getting on the property ladder as a first-time buyer is notoriously difficult, unless you happen to have a few grand stashed away in your savings account or can ask the Bank of Mum and Dad to help with the deposit,’ said Richard Hayes, CEO and co-founder of Mojo Mortgages.
‘Our first-time buyer index gives potential home buyers the chance to see where they could buy, and what’s affordable for them in some of the most popular towns and cities in the UK.’
If you’re not sure that you have enough stashed away to buy a house, here’s a useful guide on how much money you actually need to get yourself a home in the UK.
Do you own a property and fancy showing off your plush pad? 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.
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source https://metro.co.uk/2020/03/02/affordable-places-get-property-uk-first-time-buyer-12334125/?ITO=squid
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