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Sheffield offers first-time buyers the best chance to get on the property ladder

Mirror logo Mirror 23/06/2022 Suruchi Sharma Diwan

The UK property market is breaking records every month in terms of growing house prices, despite the cost of living crisis continuing to squeeze household finances.

If the massive boom in the property market has inspired you to get a foot on the property ladder, then you are not alone. But if you are not 100% sure about the best way to go about it, you might want to start with the most and the least affordable areas.

Family mortgage broker, Tembo, has revealed the best areas for first-time buyers as well as the latest mortgage trends for those trying to get on the property ladder.

Looking at 13 major cities across Britain, Tembo data shows that average house prices in Sheffield are just over four and a half times that of local incomes, making it the most affordable place for first-time buyers.

The analysis showed that 44% of first-time buyers in Liverpool used a parent to boost their mortgage, compared with 66% of those in Sheffield and 61% of those in Bristol.

At the other end of the spectrum, first-time buyers in Southampton are facing a highly challenging market, with average property prices almost nine times average regional incomes.

City

Average property price

Average income

Average property price as multiple of income

Sheffield

£187,835

£40,429

4.65

Edinburgh

£188,507

£32,458

5.81

Glasgow

£163,360

£26,827

6.09

Liverpool

£186,893

£27,974

6.68

Birmingham

£193,880

£28,928

6.70

Nottingham

£185,402

£26,452

7.01

Manchester

£219,461

£29,778

7.05

Leeds

£188,550

£25,637

7.35

Cardiff

£218,186

£28,349

7.70

London

£319,479

£41,487

7.70

Bristol

£248,413

£31,568

7.87

Leicester

£236,905

£26,710

7.97

Southampton

£246,042

£28,459

8.65

The changing mortgage market

To combat rising inflation, the Bank of England started increasing interest rates in December 2021 © Getty Images/iStockphoto To combat rising inflation, the Bank of England started increasing interest rates in December 2021

First-time buyers are increasingly turning to new mortgage products to get on the housing ladder. This is principally to plug the gap created by the fact that incomes are growing at a far lower rate than house prices, making affordability a challenge.

Tembo’s research also brought to light some hard facts regarding mortgage availability and criteria for first-time buyers in various cities. Leicester, for example, has the highest number of applicants considered ineligible for a mortgage, with 36% of applicants in the city not meeting the minimum criteria to progress their application.

Whereas, 8% of buyers in Southampton who boosted their mortgage did so with a friend, compared with just 3% of those in Birmingham and Nottingham.

Richard Dana, Founder and CEO of Tembo said: “There are undoubtedly common challenges impacting Britain’s first-time buyers, but it’s also important to realise that every would-be first-time buyer has their own story, and there are a range of issues impacting people’s ability to get on the property ladder."

"Our client data shows that the story across the country is quite varied and that one-size-fits-all solutions are unlikely to work. Mortgage providers must take time to understand and appreciate everyone’s circumstances to provide solutions that ensure the security of future homeowners and the sustainability of the market as a whole.”

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