The UK's cheapest cities for first-time buyers

Are you looking to buy your first home? We’ve compiled a list of the top 5 cheapest places to buy a house in the UK.

While the recently reduced base rate and lower inflation rates have created a promising market for property buyers in 2024, it’s still a relatively expensive time for homeowners, regardless of whether they’re buying a property or remortgaging.

After years of low mortgage rates, the fallout from the mini-budget caused rates to soar, and only recently have they begun to fall again due to the Bank of England’s 5% base rate cut.

According to data from Forbes and predictions from mortgage brokers at SPF Private Clients, mortgage rates are set to slowly decline throughout the end of 2024, offering some relief for borrowers.

While mortgage rates are now slowly falling, they are still historically high.

Sadly, first-time buyers with a 15% deposit typically paid nearly £200 more per month in 2023 compared to the previous year due to higher mortgage rates and record asking prices, according to data from Rightmove.

But if you’re not put off by the volatile housing market, where are the cheapest cities to buy your first property? And can you pay less for your mortgage compared to renting?

Rightmove has analysed the monthly mortgage payment for a typical first-time buyer property with at least two bedrooms and the equivalent rent in cities in Great Britain to find out.

This 2024 data assumes that the buyer takes out a five-year fixed-rate loan with a 10% deposit at a rate of 4.84% spread over 35 years.

While mortgage rates have fallen since this data was published in April, it can provide insight into the most affordable cities.

The cheapest cities for first-time buyers

Aberdeen is the cheapest city for first-time buyers, according to the data, where the average asking price is £102,601, with an average payment of £406 per month.

On average, you’ll save £369 a month on mortgage payments compared to renting.

In second place is Bradford, where the average asking price is £107,929, with average monthly mortgage payments of £400. You can typically save £314 a month with a mortgage compared to renting.

The table below reveals the five cheapest cities and breaks down the average monthly mortgage and rental payments for first-time buyers.

Where can first-time buyers make the biggest savings on rent?

If you’re curious about which cities offer the biggest cash savings when you make it onto the housing ladder, you’re in luck.

Rightmove has also revealed the cities where it is significantly cheaper to buy than rent.

Preston has an average asking price of £112,273 for first-buyer type properties. You’ll typically pay £416 a month for a mortgage compared to £787 when renting, saving you £371 each month.

Below are the cities where paying a mortgage is significantly cheaper than renting.

If you’re thinking of buying a property, it’s a good idea to get in touch with a financial adviser via Unbiased who may be able to find exclusive deals in a turbulent market.

Get expert financial advice

According to 2024 data from Rightmove, the best prospective cities for first-time buyers looking for affordable homes include Bradford, Carlisle, Aberdeen, Sunderland, and Preston. The cities in which it is most significantly cheaper to buy than to rent include the likes of Preston, Aberdeen, Dundee, Dundee, and Bradford.

Unbiased will match you with an expert mortgage broker who can help you find the best mortgage deal that aligns with your budget and your needs.