Cheapest Place to Buy a House in the UK

So what is the cheapest place to buy a house in the UK, and more importantly, which areas offer affordable properties but in areas that are highly desirable? We take a look at some of the bargain-priced homes in the UK right now.

The UK housing market witnessed a significant surge of more than 25% in prices during the Pandemic. This can be attributed to various factors such as favourable interest rates, tax incentives, and increased demand for larger living spaces. However, experts predict that the economic environment will lead to sluggish property prices in 2023. This will result in reduced transactional activities as buyers and sellers engage in price negotiations.

Despite the anticipated fall in house prices, there are concerns about a possible housing crash. Nevertheless, according to JLL’s projections, a crash seems unlikely. Instead, house prices in the UK are expected to decline by 6% in 2023, translating to approximately £17,500 from the current average price of £290,000.

UK Market Trends and Property Prices

In addition to the expected variations in house prices across different regions, other factors could affect the UK housing market. The ongoing political issues and their impact on the economy remain a significant concern, particularly with potential job losses and changes to working patterns. Additionally, rising interest rates could make some mortgages less affordable, reducing housing demand.

However, there are also reasons for optimism in the housing market. The UK government has announced plans to build more homes, with a target of 300,000 new homes a year by the mid-2020s. This could boost supply and help to meet the increasing demand for housing.

Moreover, the increasing popularity of flexible working arrangements and remote work could lead to a shift in the housing market. People may be less tied to living in expensive urban areas and may look for more affordable housing in smaller towns or rural areas. This could open up new investment opportunities in different parts of the UK.

Overall, while the UK housing market is facing some challenges in 2024, there are still opportunities for investors to make profitable investments by being strategic and informed in their decision-making.

 Criteria for Identifying Cheapest Places

When searching for the cheapest places to buy a house in the UK, it’s crucial to consider a variety of factors that contribute to the overall affordability and livability of an area. Here’s a detailed look at the criteria used to identify the most economical places for homeownership:

Average House Prices and How They Are Calculated

• Definition and Calculation: The average house price in an area is calculated by adding the sale prices of all homes sold within a specific period and dividing that total by the number of houses sold. This figure gives a general idea of what buyers might expect to spend on housing in the area.
• Sources of Data: Government reports, real estate websites, and housing market studies provide data on average house prices. It’s important to consider the source and the date of the information, as the housing market can fluctuate.
• Regional Variations: Prices can vary widely within regions, with rural areas often presenting more affordable options than cities. Looking at the average price in a specific location rather than at a regional level can provide a more accurate picture of what’s affordable.

Cost of Living Considerations Beyond Just the House Price

• Taxes: Council tax, which varies by locality and property value, can significantly affect the overall affordability of living in a certain area.
• Utilities: The cost of electricity, gas, water, and internet services can differ across regions, impacting the total living expenses.
• Transportation: For those commuting to work or requiring access to public transport, the cost and availability of transportation options are key considerations.

Employment Opportunities and Economic Stability of the Areas

• Job Market: Areas with a healthy job market, offering a range of employment opportunities, are more likely to provide the economic stability needed for long-term homeownership.
• Economic Growth: Regions showing signs of economic growth or investment, such as new businesses opening or infrastructure developments, can indicate a stable economic future.

Quality of Life Factors

• Education: The availability of quality education, from primary schools to higher education institutions, is a crucial factor for families considering where to live.
• Healthcare: Easy access to healthcare facilities and services contributes to the quality of life in an area.
• Safety: Crime rates and the overall sense of community safety play a significant role in choosing where to buy a house.
• Amenities: Local amenities such as parks, recreational facilities, shops, and restaurants enhance the living experience and are important for a balanced lifestyle.

Top Regions for Affordable Housing

In the UK, affordable housing can significantly vary by region, with the North East, North West, Yorkshire and the Humber, and Wales often cited for their lower house prices. 

These areas offer great value, with options ranging from urban apartments to countryside homes, catering to a wide range of needs and preferences. 

For instance, cities like Sunderland and Stoke-on-Trent in these regions are recognized for their particularly budget-friendly housing markets, making them appealing choices for first-time buyers and investors alike. 

Each of these regions combines a lower cost of living with access to ample amenities, promising a balanced lifestyle without the hefty price tag of more southern locales.

Where is the Cheapest Place to Buy a House in the UK?

In the current climate of high property prices and with the impacts of the economic crisis, for many, purchasing a property is more challenging. But where are the cheapest places to buy a house in the UK right now? 

According to Propetydata, here are the top 20 places that are home to the cheapest property in the UK.

1. Middlesbrough, TS1, £64,629
2. Bradford, BD1, £50,142
3. Sunderland, SR1, £63,100
4. Grimsby, DN31, £79,470
5. Shildon, DL4, £95,948
6. Middlesbrough, TS3, £99,569
7. Peterlee, SR8 £108,217
8. Stanley, DH9, £117,744
9. Lancashire, BB11, £137,374
10. Liverpool, L20, £126,975
11. Keighley, BD21, £123,797
12. Birkenhead, CH41, £118,122
13. Kingston upon Hull, HU9, £120,551
14. Sunderland, SR5, £126,396
15. Ferryhill, DL17, £114,566
16. Blackpool, FY1, £107,824
17. Hull, HU3, £103,180
18. Grimsby, DN32, £127,985
19. Liverpool, L5, £118,923
20. Seaton Carew, £119,333

Other Specific Areas With Cheapest Housing in the UK Are

North East England

• Durham: Known for its historic architecture and quality universities, Durham offers some of the most affordable housing in the region.
• Sunderland: Offers a coastal lifestyle with relatively low housing prices, appealing to those who enjoy a mix of urban and seaside living.
• Newcastle upon Tyne: While slightly more expensive than surrounding areas, Newcastle provides a vibrant urban environment with a strong sense of community and culture.

North West England

• Blackburn: Offers some of the lowest house prices in the region, coupled with a strong local economy.
• Bolton: Known for its market town vibe, providing affordable housing within a community-focused setting.

Wales

• Merthyr Tydfil: Among the most affordable, with opportunities for both urban and rural living.
• Blaenau Gwent: Offers some of the lowest house prices in Wales, set against a backdrop of historical and natural beauty.

Scotland

• Inverclyde: Located west of Glasgow, offering some of the most affordable waterfront properties in Scotland.
• North Lanarkshire: Provides affordable housing options with access to both Glasgow and Edinburgh.

Rural areas in Scotland tend to offer lower house prices but can come with higher living costs due to transportation and fewer amenities.

Urban areas, while offering higher house prices, provide more job opportunities and access to a wider range of services and amenities.

Yorkshire and the Humber

Affordable Areas for Potential Homeowners:

• Hull: Known for its maritime history, Hull offers affordable housing with a growing cultural scene.
• Barnsley: Provides a balance of affordable housing with access to the countryside and urban centers.

The region is undergoing significant investment in infrastructure and redevelopment, promising economic growth and improved living conditions.

Yorkshire and the Humber offer a diverse lifestyle, from the bustling cities of Leeds and Sheffield to the serene landscapes of the Yorkshire Dales and North York Moors.

Where is the Cheapest and Nicest place to Live in the UK?

Buying a property in a desirable area in the UK is not just about getting on the property ladder, but it also involves finding a location that offers a high quality of life and good investment prospects. One way to achieve this is by exploring cities in the North that are known for their affordability and up-and-coming status.

Some of the cheapest places to buy a house in the UK include cities such as Liverpool, where the average house price is around £284,276, and Bradford, where you can find properties for as little as £88,000. In addition to being affordable, these cities offer strong rental markets and are undergoing regeneration, making them attractive to investors.

Other cities that should be on the radar of buy-to-let investors include Manchester and Leeds. Manchester is known for its average yields of 6% and strong capital growth, while Leeds offers an average yield of 7.1%. These cities are also home to large student populations, which contribute to the strong rental demand.

Overall, investing in property in the North can provide investors with the opportunity to stretch their budgets while also tapping into up-and-coming locations that offer a high quality of life and the potential for strong returns. It’s important to conduct thorough research and seek professional advice before making any investment decisions.

Bradford

In Bradford it’s possible to find property in the city centre BD1 postcode for less than £60,000. The city is just 10 miles from Leeds and it offers a strategic location within the Northern Powerhouse – the UK government’s vision for a connected and globally competitive Northern economy. Bradford is supported by strong air, road and rail connections and for those looking for a cheaper place to live, or priced out of the surrounding cities, Bradford is an attractive option for commuters and first-time buyers.

In the last 10 years investment into Bradford has transformed public spaces, the residential sector and the city’s infrastructure with investment reaching around £10 billion. For example, the HS2 project, the UK’s high-speed rail line, will put Manchester just 20 minutes away from Bradford by train. Bradford allows investors to take advantage of cheaper house prices with all the benefits of connection to larger cities in the region. HS2 is expected to add £15 billion to Bradford’s economy by 2069 and the knock-on effect on house prices is expected to be significant.

For investors looking to snap up a buy-to-let bargain, Bradford also offers attractive yields and was named within the top 10 best buy-to-let areas in the UK. Some properties in the BD1 area can deliver yields between 8-10%.

Liverpool

In recent decades, a far-reaching regeneration scheme has transformed Liverpool into one of the UK’s leading cities and a hub for culture and business. House prices are significantly behind the UK national average, however, they are on the rise as buy-to-let investors seek out new, growing markets, and first-time buyer’s schemes help more people get onto the property ladder.

Property in Liverpool is currently under hot pursuit, and the city is a great place to work, live and play with plenty of growing businesses, an iconic waterfront, galleries and heritage sites. For those seeking out an affordable property, there are a number of reasonably-priced three-bedroom properties in the Netherton area that can be had for between £80,000 to £90,000.

In terms of a rental market, Liverpool is home to some of the UK’s best buy-to-let areas, and many postcodes in Liverpool offer highly attractive rental yields. For example: L7 with 10.3% yields; L6 with 8.4% yields; L1 with 8.1%; L15 and L4 both with 7.4% yields. Considering the UK average rental yield sits at around 5% and London’s at 3%, Liverpool is highly attractive for investors looking to make a monthly profit. Adding to the appeal of Liverpool’s buy-to-let rental market, the city is home to a number of world-renowned universities – including the University of Liverpool, Liverpool John Moores University, Liverpool Hope University and Edge Hill University – which produce a pipeline of over 30,000 graduates each year and many students looking for quality accommodation in the city.

Leeds

Leeds is one of the top and most sought-after cities to live and work which continues to be transformed by incoming investment. Also, Leeds offers investors strong rental yields and relatively cheap property.

The UK’s third-largest metropolitan area by population, in the last 10 years, Leeds’ population has increased 151% – seven times that of London. Leeds is the key contributor to UK GDP out of the Northern Powerhouse cities. It’s also known as the “digital capital of the North”.

Leeds offers a number of comfortable properties that you can buy for around £100,000. In the Harehills area you can find attractive three-bed properties for between £95,000 to £105,000. As well as a thriving residential rental market, Leeds is one of the most popular cities for students, making the city one of the best buy-to-let areas for investors looking to target the student market.

Birmingham

Known as the UK’s second city and home to 2.5 million people in the metropolitan area, Birmingham is located at the heart of the UK. Boasting unrivalled transport links, London is just 90 minutes by train and it’s possible to get to the UK’s main Northern cities in under 2 hours or less. Birmingham is the eighth largest economy in England. With a value of over £9.5bn and the city’s economy should increase around 25% in the next decade. Which makes investing in property a great way to capitalise on economic growth.

In the years 2016-2021, Birmingham had the highest property growth prices of any UK location. In 2023, Birmingham should see some of the strongest house price growth through 2025 of between 14.2% – 17%.

Currently three-bedroom houses in areas like Erdingon and Handsworth stand at around £140,000. Low property prices and a strong rental market put the city’s average rental yields at 5.4% – 6%. The BD5 area can achieve yields of 5-6% and some of the student areas on the city’s east side can be particularly lucrative, reaching up to 11%. Overall, rents are on the rise too, set to grow by 10% over the next four years.

Luton

While not a Northern city, and by no means the cheapest place to buy a house in the UK, Luton deserves a mention due to its affordability as a commuter town for London and as it’s status as an up and coming property hotspot.

The closer property is to a major city, especially London, the more house prices increase, as a result, many property investors and buyers are looking to satellite cities to get more for their money. Luton is one to watch as a commuter belt town, and commuters can save an average of £25,200 a year by commuting up to an hour each day rather than renting property in the UK capital. Luton has the most affordable properties of any city in London’s commuter belt (including Basingstoke, Gravesend Windsor and Northampton) with average property prices of £319,888 as well as the fastest commute time by train to central London out of the commuter belt cities.

Where is the Cheapest Rural Property in the UK?

The shift towards a desire for properties in the countryside has been notable in the UK property market. Many people are seeking larger properties with more open space, away from the hustle and bustle of city life. With remote working being more widely accepted, the location of one’s home is no longer limited by proximity to an office. This has led to an increase in demand for properties in rural areas, which has driven up property prices in these locations.

According to recent data, property prices in rural areas have increased faster than those in urban areas, with the average property price in rural areas increasing by 20.8% over a five-year period, compared to 17.5% in urban areas. Even with the end of the Stamp Duty holiday, many people are keeping their urban properties and investing in a second property in rural locations, providing them with a place to escape to the country when they feel like it.

If you are looking for an affordable rural property in the UK, County Durham is currently the most affordable area to buy. The average house price in this area is £166,252. However, it is important to note that while property prices may be lower in rural areas, other costs, such as travel expenses, may be higher. It is important to factor in all costs and consider the lifestyle that a rural property will provide before making a decision.

Conclusion

When it comes to the cheapest place to buy a house in the UK, it’s important to not only consider the property cost, but whether it’s in a desirable location that can make it attractive as a buy-to-let investment or a property that can deliver returns when it comes to a sale. For more information on the cheapest place to buy a house in the UK, get in touch with our experts today.