First-time buyers: Cheapest and most expensive areas to live revealed
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The average UK house price was £270,000 in December 2025, up £6,000 from the 12 months prior, according to the latest Land Registry House Price Index data.
Despite the rise, new data suggests that first-time buyer homes are becoming more affordable.
Around 70% of local authorities have seen an improvement in affordability over the last year, new data from Nationwide Building Society shows.
With a 10% deposit on first-time buyer properties standing between £10,000 and £25,000 in over half of local authorities.
Most affordable places for first-time buyers
Inverclyde, Scotland, is the most affordable are to live for first-time buyers with an average house price to earnings ratio (HPER) of 2.3.
HPER indicates how many times the average earnings in the area is needed to purchase a home.
The North Western town of Burnley was the second most affordable place for first-time buyers with an HPER of 2.8.
Hartlepool came in a close second, with first-time buyers only needing 2.9 times average earnings in the area to purchase a home.
The table below shows the top 10 most affordable local authorities for first-time buyers.
| Local Authority | HPER |
|---|---|
| Inverclyde | 2.3 |
| Burnley | 2.8 |
| Hartlepool | 2.9 |
| Kingston upon Hull | 3.0 |
| Merthyr Tydfil | 3.3 |
| Stoke-on-Trent | 3.4 |
| West Lindsey | 3.7 |
| Great Yarmouth | 4.3 |
| Gosport | 4.7 |
| Surrey Heath | 4.8 |
Least affordable places for first-time buyers
The London Borough of Kensington and Chelsea was the most expensive area for first-time buyers with prospective purchasers needing at least 13.9 times the average salary.
Oxford came in as the second most expensive area, requiring first-time buyers to provide at least 8 times the average salary to get on to the property ladder.
The third most expensive area was Cambridge which holds a HPER of 7.3.
The table below shows the top 10 most expensive areas for first-time buyers.
| Local authority | HPER |
|---|---|
| Kensington & Chelsea | 13.9 |
| Oxford | 8.0 |
| Cambridge | 7.3 |
| Spelthorne | 7.0 |
| South Hams | 6.9 |
| Derbyshire Dales | 5.7 |
| Stratford-on-Avon | 5.6 |
| Trafford | 5.5 |
| York | 5.4 |
| Cardiff | 5.3 |
Where are homes becoming more affordable?
Local authorities in London were among the most improved for first-time buyer housing affordability.
Islington saw the biggest improvement, with the average earnings needed to purchase a home falling from 10.6 in 2024 to 7.8 in 2025.
Similarly, in the City of London, the earnings ratio decreased from 11.1 in 2024 to 8.4 in 2025, making it the second most improved area.
Wandsworth with the third most improved for first-time buyer affordability, with buyers needing 8.4 times the average earnings in 2025, down from 11.9 the year before.
The table below shows the top 10 most improved areas for housing affordability.
| Local authority | HPER (2024) | HPER (2025) |
|---|---|---|
| Islington | 10.6 | 7.8 |
| City of London | 11.1 | 8.4 |
| Wandsworth | 10.2 | 8.4 |
| Hammersmith & Fulham | 11.9 | 10.6 |
| Norwich | 5.4 | 4.3 |
| Barnet | 9.4 | 8.3 |
| Hackney | 10.0 | 9.0 |
| Welwyn Hatfield | 7.6 | 6.6 |
| Kensington & Chelsea | 14.9 | 13.9 |
| Harrow | 8.4 | 7.4 |
How to buy your first home
Getting on to the property ladder is a momentous milestone and preparation is key.
Taking time to review your finances, particularly your house deposit and credit score if you’re applying for a mortgage, can help improve your chances of getting a good deal.
You’ll also need to set enough money aside for additional costs such as a house survey, legal fees and moving costs.
One way to maximise your savings is by using a top-rate savings account or Cash ISA. If you have a longer time horizon, of at least 5 years, using a Stocks and Shares ISA could help you build up a pot to help with homebuying costs.
Another product to consider is a Lifetime ISA, if you’re a first-time buyer, depending on the value of the home you’re looking to purchase.
For more tips, check out our podcast episode: The Truth About Buying a Home.
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