Cheapest places to live in each region of the UK
Looking to buy your first home but don’t think 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.
UK house prices have gone up almost twice as fast as the UK average wage has, so the thought of being able to own your own home someday may seem like a distant dream!
To make matters worse, nearly half the country’s population believe the younger generation are equally to blame because of reckless spending on things like takeaways and TV subscriptions.
That may be a bleak and frustrating outlook, 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.
It’s also important to remember that there are a few 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, meaning you get free money towards your first home!
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
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% 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 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% average property price)
- Average rent (per month) - £881
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% 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) - £35,518
- 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 Yorkshire?
Yorkshire is a huge region, including cities such as Sheffield and Leeds, but your money is likely to go further in places like Hull, Doncaster and Barnsley where property prices are much more reasonable.
- Average salary (per year) - £31,920
- Average property price - £186,600
- Average deposit - £34,139 (18% of average property price)
- Average rent (per month) - £799
Lifetime ISAs: the secret to saving a deposit 25% faster
Wherever you choose to buy, if you’re looking to start building up a deposit for your first home, a lifetime ISA could help you get there faster.
Lifetime ISAs are cash or investment accounts designed to help people buy their first home.
With a lifetime ISA, you get a 25% government bonus on everything you pay in. You can pay in up to £4,000 each tax year, which means first-time buyers could get up to £1,000 extra every year towards their mortgage deposit!
As with all good things though, there’s a catch.
If you're under 60 and you take money out of your lifetime ISA for anything other than buying your first home, you’ll be charged a 25% withdrawal fee. So you should only open a lifetime ISA if you’re sure you’d like to use the money you're saving to become a homeowner or for life after 60.
Despite how useful they can be in helping people buy a home, not many people have heard of lifetime ISAs.
In fact, in our recent survey, only 11% of people mentioned having a lifetime ISA, while only 9% had used a lifetime ISA to buy their first home.
In that same survey, another 20% said they’d like to open a lifetime ISA account now that they knew about it, while 30% said they didn’t have enough knowledge on the account and how it works.
OneFamily Lifetime ISA
Ready to start saving for your first home?
Our lifetime ISA could help! You'll gain a 25% boost from the government on top of your savings, as well as any potential stocks and shares returns.
OneFamily Lifetime ISA invests in stocks and shares. This means your money has good potential to grow over the long-term, but the value of your investments could go down as well as up and you could get back less money than you've put in.
Sources:
Research for house prices and average deposits for England.
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