Looking to buy your first home but not sure you can afford it? There may be somewhere cheaper for you just around the corner!
Today’s house prices have made it more difficult than ever for young adults to buy their first home.
Average wages haven't kept up with rising house prices, so owning your own home can feel like a distant dream.
It may feel bleak, but there is hope! The road to becoming a homeowner may have a few bumps and potholes, but it’s not a completely closed off route, and there are plenty of shortcuts to help you get there faster.
Wherever you are in the country, it’s likely that, as a first-time buyer, you won’t be able to buy the nicest house in your area. But, looking slightly further afield might give you more options.
To help you get started, we’ve rounded up the cheapest places to buy a first home in each region of the UK.
Home-buying shortcuts
There are government schemes out there to help you buy your first home, including lifetime ISAs, a type of saving or investment account designed to help you save your deposit faster.
With a lifetime ISA, you get a 25% government bonus on the money you put in. You can pay in up to £4,000 each tax year, so there's up to £1,000 government bonus available every year!
Just be aware that if you take money out for anything other than buying your first home, you'll be charged a government withdrawal charge which is likely to be higher than the bonus you'll have received on that money.
Take a look at our guide to owning your own place sooner.
Cheapest cities to buy a home in the UK, by region
Where is it cheapest to buy a home in the North East?
There are plenty of opportunities in the North East of England for first-time buyers. You're likely to get the best deals Middlesborough, Sunderland and Durham.
This region has the lowest average rent with a steady salary and the lowest expected weekly expenses, so you’ll have more to spend on the things you love.
Average salary (per year): £31,200
Average property price: £155,000
Average deposit: £30,521 (19% of average property price)
Average rent (per month): £695
Where is it cheapest to buy a home in the North West?
The North West of England has a relatively low cost of living, compared to the rest of the UK. Especially Burnley, Blackpool, Preston and Wigan.
You may find the most popular cities in the region, such as Manchester and Liverpool, are pricier, but there are plenty of places to live that are only a short train ride away.
Average salary (per year): £33,036
Average property price: £215,000
Average deposit: £37,194 (17% of average property price)
Average rent (per month): £848
Where is it cheapest to buy a home in the East Midlands?
The East Midlands is known to have fairly low house prices, compared to other regions.
Leicester and Northampton may have properties in your price range, but Mansfield could be the most cost effective.
As the Midlands are in the middle of England, you’d be fairly well-connected, meaning it could be easier for you to travel and work wherever you want in the country.
Average salary (per year): £31,634
Average property price: £240,000
Average deposit: £41,058 (17% of average property price)
Average rent (per month): £860
Where is it cheapest to buy a home in the West Midlands?
Those living in the West Midlands tend to have the most disposable income out of all the regions. This, paired with the region’s fairly low house prices, is a match made in heaven for first-time buyers.
The cheapest areas here are Stoke-on-Trent and Telford.
Average salary (per year): £33,003
Average property price: £249,000
Average deposit: £40,205 (16% of average property price)
Average rent (per month): £905
Get up to £1,000 extra towards your first home deposit every year with a OneFamily Lifetime ISA
Where is it cheapest to buy a home in the South East?
The South East is a popular place to work and live, mostly because it includes London, meaning wherever you live you’ll have easy access to the capital.
But you'll probably want to avoid London itself due to much higher house prices than elsewhere in the UK. The cheapest areas to buy in this region are Dover, Portsmouth, Basingstoke, Sheerness and Southampton.
Even though the South-East is known to be one of the most expensive places to live, these areas offer properties for less than you might think. It also helps that this region has the highest employment rate in the country, so there are more job opportunities.
Average salary (per year): £36,560
Average property price: £373,000
Average deposit: £67,569 (18% of average property price)
Average rent (per month): £1,325
Where is it cheapest to buy a home in the East?
The East offers a wide range of low-price properties, as long as you look in the right places.
Avoid big cities like Cambridge, where it's cheaper to visit than live, and look at areas such as Jaywick and Wisbech.
Average salary (per year): £34,833
Average property price: £337,000
Average deposit: £61,113 (18% of average property price)
Average rent (per month): £1,163
Where is it cheapest to buy a home in the South West?
The South West is known for its good housing and the average house price in this region is actually quite reasonable when compared to others!
It could be a good place to buy if you want to live in a city. The cheapest areas to live here are Plymouth and Bournemouth.
The area also has the second highest employment rate, so you’ll have access to plenty of job opportunities.
Average salary (per year): £33,450
Average property price: £317,000
Average deposit: £55,708 (17% of average property price)
Average rent (per month): £1,077
Where is it cheapest to buy a home in Wales?
On average, Wales has a lower cost of living than the rest of the UK, but that doesn't mean you'd be compromising on quality of life!
The cheapest areas to buy property in Wales are Swansea and Newport, both busy cities with outstanding natural beauty nearby.
Average salary (per year): £32,371
Average property price: £204,000
Average deposit: £37,179 (18% of average property price)
Average rent (per month): £881
Invest in a climate-focused fund with OneFamily's Lifetime ISA
Where is it cheapest to buy a home in Northern Ireland?
Northern Ireland has the second-lowest average rent and the third-lowest average house price in the UK, so whatever your financial situation is you’re likely to find a first home within your price range.
The cheapest areas to live in in Northern Ireland are Derry and Belfast.
As an extra help for your household budget, everyone living in Northern Ireland can get their NHS prescriptions for free!
Average salary (per year): £32,900
Average property price: £170,400
Average deposit: £33,199 (19% of average property price)
Average rent (per month): £735
Where is it cheapest to buy a home in Scotland?
Scotland has some of the lowest average house prices in the UK, especially if you look at areas such as Dundee and Aberdeen.
It also has a higher average salary than most of the UK and the second-highest disposable income across all regions, so you might have a little extra money to spend even after making your monthly mortgage payments.
Average salary (per year): £32,900
Average property price: £163,200
Average deposit: £41,442 (25% of average property price)
Average rent (per month): £793
Where is it cheapest to buy a home in Scotland?
Scotland has some of the lowest average house prices in the UK, especially if you look at areas such as Dundee and Aberdeen.
It also has a higher average salary than most of the UK and the second-highest disposable income across all regions, so you might have a little extra money to spend even after making your monthly mortgage payments.
Average salary (per year): £32,900
Average property price: £163,200
Average deposit: £41,442 (25% of average property price)
Average rent (per month): £793
Open a OneFamily Lifetime ISA
Our Lifetime ISA comes with a 25% government bonus, worth up to £1,000 a year!
Our Lifetime ISA invests in stocks and shares, so the value is likely to go up and down over time. This is normal for this type on investment, but it means there is a risk you could get back less than you put in if you withdraw at a time when the value is lower.
