The UK's most expensive cities for first-time buyers
Explore the UK's most expensive cities for first-time buyers and learn about the challenges of entering the property market.
Over the past few years, homeowners and first-time buyers have faced soaring mortgage costs, relieved only slightly by the Bank of England’s interest rate reduction in August 2024.
In 2022, the fallout from the mini-budget caused rates to soar before falling towards the end of the year. Although some fixed mortgage rate reductions have taken place since June this year, fixed rates are still at a far higher level than they have been in prior years.
According to recent data from Rightmove published in September 2024, first-time buyers with a 20% deposit are currently paying £147 less per month, on average, than they did at the same time last year.
While there are some cities that are relatively cheap to buy property in, some cities are significantly more expensive.
Rightmove notes that the average home price for a first-time buyer varies based on the location and that house prices have shifted considerably over the last year alone.
The organisation notes that areas such as the East of England, London, the South East, the South West, and the East Midlands have some of the highest average asking prices and average monthly mortgage repayments in the UK.
While mortgage rates may drop further, after the publishing of this data in September 2024, it can still provide insight into the most expensive cities to buy a property in for the first time.
Which cities are the most expensive?
It should come as little surprise that London is the most expensive city for first-time buyers, where the average asking price is £509,085 with an average mortgage payment of £2,126 per month.
On average, you’ll pay £313 more a month on mortgage payments compared to renting.
In second place is the South East, where the average asking price is £294,605, with average monthly mortgage payments of £1,230.86. You’ll typically pay £203 less a month with a mortgage compared to the previous year.
The below table reveals the five most expensive cities and the average monthly mortgage and rental payments for first-time buyers.
| Cities | Average asking price | Average monthly mortgage payment | Average monthly rental payment |
|---|---|---|---|
| London | £509,085 | £2,126.96 | £2,264 |
| St. Albans | £391,429 | £1,454 | £1,509 |
| Cambridge | £361,429 | £1,341 | £1,533 |
| Winchester | £344,638 | £1,278 | £1,332 |
| Oxford | £338,085 | £1,254 | £1,561 |
If you’re thinking of buying a property, it’s a good idea to get in touch with a mortgage broker via Unbiased who may be able to find exclusive deals.
Get expert financial advice
There are several cities in the UK with rental and house prices that far exceed the national average.
Cities like London, St Albans, Cambridge, Winchester and Oxford are well-known for their high average monthly rentals and mortgage repayments, which may increase costs for first-time buyers looking to relocate to one of these prime destinations.
If you are a first-time buyer considering buying in one of the UK’s most expensive cities, Unbiased can connect you with a qualified mortgage broker who can help you find the right mortgage for you.
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