East Ayrshire has been named the UK’s most affordable location for first-time buyers, research from Lloyds reveals.
The Scottish local authority topped the rankings with an average first-time buyer property price of £147,353, ahead of Inverclyde (£149,929) and Blackpool (£150,780).
Kingston upon Hull, Na h-Eileanan Siar, Hyndburn and Merthyr Tydfil also featured in the top 10 most affordable areas, with all locations recording average prices significantly below the UK average.
Lloyds says buyers using its new £5,000 deposit mortgage could secure a home worth up to £300,000 with a minimum £5,000 deposit, subject to affordability checks and a maximum borrowing limit of 4.5 times income. The 5-year fixed rate mortgage is available from today at 5.89%.
AFFORDABILITY BARRIER
The lender’s analysis found affordability remains one of the biggest barriers for aspiring homeowners, but highlighted areas where lower house prices could help more buyers onto the ladder.
In England, Blackpool ranked as the most affordable location for first-time buyers, while Merthyr Tydfil topped the Welsh rankings and Mid and East Antrim led in Northern Ireland.
The research also highlighted areas where younger buyers are managing to purchase earlier. While the average first-time buyer age across the UK now stands at 32, buyers in Ribble Valley have an average purchasing age of just 27.
OPPORTUNITY KNOCKS
Amanda Bryden (main picture, inset), Head of Mortgages at Lloyds, says: “Our research shows there are still genuine pockets of value for first-time buyers, particularly for those with an open-mind who are willing to be flexible on location and property type.
“With ongoing cost of living pressures and wider economic uncertainty, it’s completely understandable that some people are feeling cautious. But there are opportunities out there, and for many buyers, that flexibility can make a real difference.
“What matters most is finding a mortgage that works for your own budget and circumstances, not just today, but over the long term. Lower deposit options, such as our new £5k deposit mortgage, could help some people get on the ladder years earlier than they might expect.”
GEN Z OPPORTUNITIES
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), adds: “While affordability challenges remain a significant hurdle for many aspiring homeowners, this research highlights that there are still parts of the UK where first-time buyers can realistically take their first step onto the property ladder.
“Areas across Scotland, the North of England and Wales continue to offer comparatively accessible price points, particularly for buyers willing to broaden their search criteria or consider emerging locations with strong transport links and regeneration potential.
“However, affordability is about more than headline house prices alone. Buyers must also consider mortgage repayments, energy efficiency, local employment opportunities, commuting costs and the long-term sustainability of homeownership.
“Low-deposit mortgage products may help unlock access for some households, but it remains vital that buyers fully understand the financial commitment involved and seek professional advice before proceeding.”
VALUE FOR MONEY
James Nightingall of property search service HomeFinder AI says: “We are encountering more first-time buyers who set out to purchase a home in central London but completely change their mind to buy in outer boroughs or more affordable spots.
“More than ever, buyers want value for money and many are willing to compromise on location.”
