Preston named among cheapest cities for first-time buyers in UK
Preston has been named among the cheapest places to get on the property ladder in the UK by Rightmove.
The online real estate property portal found that the average asking price for a first-time buyer-type property with two bedrooms or fewer in the city is £112,273. Assuming a 20% deposit, a typical first-time buyer in Preston could pay around £416 per month in mortgage costs, Rightmove calculated.
Aberdeen was identified as the least expensive city at £102,601 and around £406 per month in mortgage costs. Meanwhile, the average advertised rent in Carlisle is £607 per month, the website found.
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Lancaster was the eighth cheapest city at £764 while Preston also made the top 10 at £787. Oxford was identified as the most expensive city outside London to rent.
The research looked at more than 50 cities across Britain. It made certain assumptions about mortgage costs, including that first-time buyers in Scotland and Wales had a 20% deposit and were taking out a five-year fixed-rate mortgage at average rates. It also assumed that first-time buyers in England had a slightly higher deposit, at 25%, reflecting industry averages for deposit sizes, and were taking out a five-year mortgage.
After Aberdeen, Bradford was found to be the next cheapest city to be a first-time buyer, with an average asking price of £107,929, with Sunderland placed third, with an average price tag of £111,263. The cost of renting a two-bedroom or smaller home has increased by 39% in the last five years, compared with a 19% jump in the cost of buying a two-bedroom or smaller home, Rightmove said.
Rightmove’s property expert Tim Bannister said: "These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates. Longer mortgage terms are becoming more common as a way to improve overall affordability and reduce monthly payments, though first-time buyers should be aware of what they are paying in interest compared with their actual mortgage."
The 10 cheapest cities to get on the property ladder
Aberdeen, £102,601, £406
Bradford, £107,929, £400
Sunderland, £111,263, £413
Carlisle, £111,268, £413
Preston, £112,273, £416
Hull, £113,920, £423
Dundee, £116,191, £460
Stoke-On-Trent, £117,113, £434
Durham, £125,957, £467
Doncaster, £128,062, £475
The 10 most expensive cities to get on the property ladder
London, £501,934, £1,862
St Albans, £391,964, £1,454
Cambridge, £361,429, £1,341
Winchester, £344,638, £1,278
Oxford, £338,085, £1,254
Brighton, £335,402, £1,244
Bristol, £280,112, £1,039
Chelmsford, £262,522, £974
York, £244,834, £908
Edinburgh, £239,028, £946
The 10 cheapest cities to rent
Carlisle, £607
Hull, £638
Sunderland, £648
Stoke-On-Trent, £701
Doncaster, £707
Bradford, £714
Wrexham, £754
Lancaster, £764
Aberdeen, £775
Preston, £787
The 10 most expensive cities to rent
London, £2,264
Oxford, £1,561
Cambridge, £1,533
St Albans, £1,509
Brighton, £1,468
Bristol, £1,336
Winchester, £1,332
Edinburgh, £1,310
Chelmsford, £1,300
Milton Keynes, £1,239