House Prices and the North-South Divide: First-Time Buyers

UK starter home prices have reached a new milestone of £240,433 with annual growth accelerating to 0.8%. While lower borrowing costs and narrowed gaps between renting and buying are easing market entry, regional affordability challenges persist. [1, 2]

Regional Price & Market Variations
The national average masks stark regional differences, with demand pushing prices higher in the north while southern markets correct: [1, 2, 3, 4]

• London: Prices declined by 1.1%, pushing the average first-time buyer home to £534,831. Buyers are primarily targeting smaller 1-2 bed flats. [1, 2]
• Northern England: The North East leads with 2.8% annual growth (averaging £181,133). The North West also grew by 2.4% to an average of £248,218. Buyers here mostly target 3-bed houses. [1, 2]
• Scotland: Average prices for starter properties reached £223,277, recording a 3.9% increase. [1]
• Northern Ireland: The strongest performing market, with 7.4% annual growth, bringing the average property to £229,000. [1]

What You Will Need to Buy
To secure an average £240,433 property, you will typically need to prepare for the following:

• Deposit Requirements: Standard minimum deposits range from 5% (£12,021) to 10% (£24,043). You can compare available products on MoneySuperMarket Mortgages. [1]
• Stamp Duty: In England and Northern Ireland, purchases over £300,000 are subject to a 5% stamp duty charge on the portion above the threshold. [1]
• Mortgage Calculations: Most lenders will offer 4 to 4.5 times your annual household income. You can use the Nationwide Mortgage Calculator to estimate your exact borrowing power. [1]

If you would like to get a clearer picture of your own purchasing power, let us know:

• What is your total household income?
• What region are you planning to buy in?
• How much have you saved for a deposit so far?

We can help you estimate your monthly repayments or check what schemes (like First Homes or shared ownership) might apply to you.