Lloyds research identifies the most accessible housing markets as the bank launches a new £5,000 deposit mortgage product.
East Ayrshire in Scotland has been identified as the most affordable location in the UK for first-time buyers, with an average purchase price of £147,353, according to research published by Lloyds.
The analysis examines average prices paid by first-time buyers across local areas throughout the UK, and coincides with Lloyds opening applications for a new £5,000 deposit mortgage.
The top 10 most affordable locations are dominated by areas in Scotland and the North of England. In each of these locations, Lloyds calculates that monthly repayments under the new product could fall below £1,000.
In England, Blackpool in the North West records the lowest average first-time buyer price at £150,780. In Wales, Merthyr Tydfil tops the list at £156,498, while Mid and East Antrim leads in Northern Ireland at £175,308.
| Top 10 most affordable UK areas for first-time buyers | |||
|---|---|---|---|
| Local area | Region | Average FTB price | Monthly mortgage cost* |
| East Ayrshire | Scotland | £147,353 | £843 |
| Inverclyde | Scotland | £149,929 | £859 |
| Blackpool | North West | £150,780 | £864 |
| Kingston upon Hull | Yorkshire and The Humber | £151,171 | £866 |
| Na h-Eileanan Siar | Scotland | £155,300 | £891 |
| Hyndburn | North West | £155,911 | £894 |
| Clackmannanshire | Scotland | £156,041 | £894 |
| Merthyr Tydfil | Wales | £156,498 | £898 |
| South Tyneside | North East | £157,551 | £904 |
| West Dunbartonshire | Scotland | £159,437 | £915 |
| Source: Lloyds. *Monthly mortgage cost based on a £5,000 mortgage deposit, with an interest rate of 5.89% fixed for five years, and a 30-year term, with no product fees. | |||
"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," said Amanda Bryden (pictured right), head of mortgages at Lloyds.
"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. Speaking to a mortgage expert early can help. It gives you a clearer picture of what you can comfortably afford, and the confidence to make choices that feel right for you, whatever the wider market might be doing."
The Lloyds research also found that the average age of a first-time buyer in the UK now stands at 32, two years higher than a decade ago, though unchanged from the previous year. In the 10 most affordable areas, however, the average age drops to as low as 27, suggesting that lower house prices are enabling younger buyers, including those in Generation Z, to enter the market earlier.
| Top 10 UK areas with youngest average first-time age | |||
|---|---|---|---|
| Local area | Region | Average FTB age | Average FTB price |
| Ribble Valley | North West | 27.0 | £219,980 |
| South Staffordshire | West Midlands | 27.8 | £259,678 |
| Pendle | North West | 27.9 | £188,136 |
| Rutland | East Midlands | 28.1 | £281,130 |
| Cannock Chase | West Midlands | 28.3 | £213,399 |
| North Norfolk | Eastern England | 28.4 | £242,318 |
| Staffordshire Moorlands | West Midlands | 28.5 | £219,616 |
| Chorley | North West | 28.7 | £221,232 |
| Mid Suffolk | Eastern England | 28.7 | £289,372 |
| Westmorland and Furness | North West | 28.8 | £212,848 |
| Source: Lloyds | |||
"The fact that younger buyers are entering the market earlier in certain regions reflects how local affordability and housing supply can directly influence opportunities for Gen Z," said Mary-Lou Press, president at NAEA Propertymark.
"A healthy housing market relies on a sufficient mix of homes at different price points, alongside policies that support long-term supply and consumer confidence.
"Property professionals continue to play a crucial role in guiding first-time buyers through an increasingly complex market, helping consumers make informed decisions based on their personal circumstances and local market conditions."
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