Burnley and Blackpool seen as second and third most affordable places to buy a house in the UK

First-time buyers are rushing to beat the stamp duty deadline to afford properties in England's priciest locations.

From April 2025, stamp duty rates will revert to previous levels, with the “nil rate” band for first-time buyers reducing from £425,000 to £300,000. Rightmove says first-time buyers in the priciest areas are the most affected with only 8% of homes in London stamp-duty free from April.

Since the Autumn Budget, there's been an increase in demand for first-time buyers, showing they want to avoid paying higher charges. Before the Budget, first-time buyer demand in London was 28% ahead of last year but this has now increased to being 31% ahead, the PA News Agency reports.

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On average, it takes five months to complete a property transaction after agreeing a sale, so first-time buyers will need to be quick to get there before April. Rising stamp duty charges are likely to have less impact in areas where there is already a wide availability of homes below the £300,000 threshold, Rightmove said.

Tim Bannister, Rightmove’s property expert said: “With stamp duty thresholds in England lowering from April, we’re seeing early signs of first-time buyers reacting. In London and higher-priced areas, where first-time buyers are most likely to be affected, we’re seeing some pull forward their plans to try and avoid higher charges.

“In most other areas of England, which have a greater availability of stamp duty-free homes for first-time buyers, we’re seeing the opposite trend of some first-time buyers taking a pause for breath.”

However, the average house price-to-earnings ratio has been steadily reducing since it reached a peak of 7.24 in the summer of 2022, Halifax said. Amanda Bryden, head of Halifax Mortgages, said: “Housing affordability has improved over the past year, thanks to stabilising property prices, strong wage growth, and easing interest rates. That’s great news for first-time buyers and existing homeowners looking to remortgage or move up the property ladder.

“However, while homes are becoming more affordable, the progress has been gradual. Buying a property remains a significant challenge for many, with prices still near record highs and interest rates likely to stay higher than we’ve been used to over the past decade.”

In areas across England, the North West, South East and Yorkshire and the Humber, there was also increase in their average house price-to-earnings ratios. This means, according to the report, homes have become less affordable relative to income.

Burnley and Blackpool had ratios of 3.20 and 3.34 respectively, compared to the North East of England which was seen as the most affordable with a house price-to-earnings ratio of 4.38.

Here are the average house price-to-earnings ratios in the third quarter of 2024, according to Halifax:

• Eastern England, 7.95

• East Midlands, 5.97

• London, 8.22

• Northern Ireland, 5.09

• North East, 4.38

• North West, 6.02

• Scotland, 5.08

• South East, 8.96

• South West, 7.52

• Wales, 5.63

• West Midlands, 5.70

• Yorkshire and the Humber, 5.42

And here are the 10 most affordable places in the UK with their nation or region and average house price-to-earnings ratio, according to Halifax:

1. Hull, East Yorkshire, 3.1

2. Burnley, North West, 3.2

3. Blackpool, North West, 3.3

4. West Dunbartonshire, Scotland, 3.4

5. Dumfries and Galloway, Scotland, 3.4

6. Stoke-on-Trent, West Midlands, 3.4

7. South Tyneside, North East, 3.5

8. East Ayrshire, Scotland, 3.5

9. Dundee, Scotland, 3.5

10. North Ayrshire, Scotland, 3.5

And here are the 10 least affordable areas of the UK identified by Halifax:

1. Elmbridge, South East, 17.5

2. St Albans, Eastern England, 14.0

3. Kensington and Chelsea, London, 13.9

4. Waverley, South East, 13.5

5. Sevenoaks, South East, 13.1

6. Mole Valley, South East, 12.8

7. Windsor and Maidenhead, South East, 12.5

8. Hertsmere, Eastern England, 12.1

9. Guildford, South East, 11.5

10. Epping Forest, London, 11.5

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