The north has come into its own in recent years thanks to the Northern Powerhouse initiative, extensive investment in key city infrastructure and developments transforming the landscape. All of this, along with the Brexit effect on the south east causing prices to plummet in former property hotspots, mean that northern cities are where it’s at both for investors and first-time buyers.
With all this in mind, it’s perhaps not surprising that recent research from Zoopla has found Liverpool to be one of the most affordable cities in the UK for first-time buyers.
First-time Buyers Index
Liverpool ranked third behind Middlesbrough and Hull as the most affordable when compared with 50 other major cities. Buyers in Liverpool can expect to an average price of £122,137 for a property. Middlesbrough came in second with an average price of £107,041 and Hull first at £104,376.
To compile the index, Zoopla analysed several different data points and compared the 50 largest cities in the UK. The data points include the deposit amount required, Stamp Duty tax relief available and property prices. By combining these and converting to a score out of ten, the index was created.
The average first-time buyer in Liverpool needs a deposit of £18,320. This is based on 15% of the property’s value at £122,137. As a comparison, Manchester first-time buyers need an average deposit of £25,314 on property costing £168,761.
However, Manchester is still very much affordable when compared with the south of the country. London is unsurprisingly at the bottom of the index and shows that a first0time buyer would need to get a deposit together of £77,727 and expect to pay about£518,178 for a property.
As well as London, areas like Cambridge are out of reach to most first-time buyers. An average deposit in Cambridge equates to £65,716 for a property cost of £438,109. Brighton, Colchester and Reading are the other cities in the bottom five of the index.
Northern Cities More Viable
Recent research shows that northern cities have the most viable options for first0time buyers in this country. Liverpool is particularly popular with first-time buyers as it offers a modern city with plenty of redevelopment, investment and restructuring, as well as a buoyant job market and affordable property.
It’s difficult for people in the south to get on the property ladder at all, and we expect to see northern cities continue to rise in the rankings.