Asking prices rise fastest in sub-£170,000 markets as affordability drives demand north
Average asking prices for first-time buyer properties are rising most sharply in lower-cost areas of northern England and Scotland, according to new data from Rightmove.
Bridlington in East Riding of Yorkshire and St Helens in Merseyside recorded the strongest annual growth, both up 18% year on year, with average asking prices of £167,321 and £133,106 respectively. Falkirk in Stirlingshire followed with a 17% rise to £118,327, and Hartlepool posted a 12% increase to £104,276.
All four of the fastest-growing locations sit below the £170,000 mark, pointing to sustained demand in areas where properties remain accessible to buyers entering the market for the first time.
Across Great Britain, the average asking price for a typical first-time buyer home — defined as properties with up to two bedrooms — currently stands at £228,048, down 0.7% on the same period last year.
Conditions are less buoyant at the more expensive end of the market. Brighton and Southampton have both seen first-time buyer asking prices decline this year, with high stock levels and stretched affordability appearing to make purchasers more cautious.
St Albans in Hertfordshire remains the most expensive location for first-time buyers, with average asking prices at £401,352. Middlesbrough is the most affordable, at £90,929.
UK first-time buyer price hotspots
Average asking prices for 0–2 bedroom properties. Hover a dot for details.
Source: Rightmove
"Affordability continues to shape where first-time buyers are looking, and we're seeing the strongest price growth in areas where homes remain within reach for more people," said Colleen Babcock (pictured right), property expert at Rightmove.
"Lower-cost locations are still seeing strong interest, with competition for homes helping to hold prices up. In more expensive markets, tenants are taking a bit more time and thinking more carefully about what they can afford, which is keeping growth relatively flat."
According to Nathan Emerson (pictured right), chief executive of industry body Propertymark, the figures show that affordability continues to drive first-time buyer activity, with the strongest price growth concentrated in areas where homeownership remains within reach.
“While demand remains strong in many northern English and Scottish markets, buyers still face challenges from higher mortgage costs, ongoing living expenses and saving for a deposit," he said.
“The differences in price growth across the country highlight the influence of local market conditions, with affordable areas continuing to attract strong demand.
“To help more people onto the property ladder, governments across the UK must prioritise increasing housing supply and improving affordability.”
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