Home Residential PropertyFirst-Time Buyers Revealed: The best and worst areas for first-time buyers

Revealed: The best and worst areas for first-time buyers

by LLP Reporter
20th Nov 18 2:12 pm

New research by Compare My Move reveals the best and worst areas for first time buyers to get on the property ladder across Britain. The figures show how long it takes young renters in the 50 largest British towns and cities to save a deposit for their first home. The research looked at how long it takes to save the average 15% deposit compared to the 5% deposit needed for the Help to Buy Equity Loan, and highlights the amount spent in rent while saving.

The research finds that the average British renter can save enough for the 5% deposit in a year, compared to the 3 years it would take to save for a 15% deposit. Getting on the housing ladder faster helps millennials save ยฃ10k on average in rent costs.

Headline figures at a glance:

  • Renters in only 14 of the largest cities and towns in Britain can save up for a 5% deposit in under a year.
  • Burnley is best: Savers in Burnley can get together a 5% deposit in only 7 months.
  • Oxford is worst: Over 5 years of saving for a 5% deposit, 17 years for a 15% deposit.
  • Young renters in London, Reading, and Cambridge take more than a decade to save up a 15% deposit on their first home.
  • London renters can trim off 7 years of saving through the Help to Buy scheme, as it takes the average millennial 3 years and 7 months to save up a 5% deposit.
  • The average first time buyer in Britain pays ยฃ15k in rent while saving up a 15% deposit, and ยฃ5k for a 5% deposit.

The best areas for first-time buyers:

Area Avg 15% FTB Deposit Years to Save 15% Avg 5% FTB Deposit Months to Save 5%
Burnley ยฃ10,436 1 Years and 9 Months ยฃ3,479 7 Months
Dundee ยฃ14,998 1 Years and 10 Months ยฃ4,999 8 Months
Hull ยฃ14,776 2 Years and 3 Months ยฃ4,925 9 Months
Sunderland ยฃ14,930 2 Years and 4 Months ยฃ4,977 10 Months
Blackpool ยฃ14,306 2 Years and 5 Months ยฃ4,769 10 Months
Liverpool ยฃ17,026 2 Years and 5 Months ยฃ5,675 10 Months
Glasgow ยฃ17,168 2 Years and 6 Months ยฃ5,723 10 Months
Preston ยฃ16,098 2 Years and 6 Months ยฃ5,366 10 Months
Doncaster ยฃ16,591 2 Years and 7 Months ยฃ5,530 11 Months
Huddersfield ยฃ18,927 2 Years and 7 Months ยฃ6,309 11 Months
Bradford ยฃ17,940 2 Years and 8 Months ยฃ5,980 11 Months
Edinburgh ยฃ18,574 2 Years and 8 Months ยฃ6,191 11 Months
Wolverhampton ยฃ18,889 2 Years and 8 Months ยฃ6,296 11 Months
Dudley ยฃ21,950 2 Years and 8 Months ยฃ7,317 12 Months

 

The worst cities for firest-time buyers:

City Avg 15% FTB Deposit Years To Save 15% Avg 5% FTB Deposit Years To Save 5%
Southend- on-Sea ยฃ35,767.50 5 Years and 9 Months ยฃ11,922.50 1 Years and 11 Months
Swindon ยฃ28,145.85 6 Years and 1 Months ยฃ9,381.95 2 Years and 1 Months
Bristol ยฃ37,861.78 7 Years and 8 Months ยฃ12,620.59 2 Years and 7 Months
Crawley ยฃ38,324.16 9 Years and 2 Months ยฃ12,774.72 3 Years and 1 Months
Slough ยฃ41,711.53 9 Years and 5 Months ยฃ13,903.84 3 Years and 2 Months
London ยฃ63,070.67 10 Years and 7 Months ยฃ21,023.56 3 Years and 7 Months
Reading ยฃ41,147.76 10 Years and 8 Months ยฃ13,715.92 3 Years and 7 Months
Cambridge ยฃ55,551.55 14 Years and 3 Months ยฃ18,517.18 4 Years and 9 Months
Oxford ยฃ53,105.08 16 Years and 12 Months ยฃ17,701.69 5 Years and 8 Months

 

Compare My Move Co-Founder Dave Sayce said: โ€œOur research shines a light on the struggle many young renters face in getting together a deposit for their first home.
โ€œIn many cities itโ€™s a race against rent to save a deposit as a prospective first time buyer. In cities and towns where rent greatly outstrips the national average, it can take more than a decade for renters in their 20โ€™s to save up a 15% deposit.

โ€œItโ€™s clear from our research that the Help to Buy scheme acts as an important catalyst for getting renters on the property ladder, and its extension to 2023 in the recent budget will act as a lifeline to generation rent.โ€

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