East and North Ayrshire have been identified as some of most affordable areas for first-time buyers, a new study by L&C Mortgages has revealed.
The study analysed Gov.UK data on median earnings and average first-time buyer house prices per region, revealing the UK areas with the best house price-to-income ratio.
Ranking in first place was East and North Ayrshire, where the median monthly salary was £2,268, just lower than the UK average of £2,322.
The area boasts a median first-time buyer house price of just £103,453, the lowest in the UK.
This gave it a ratio of 3.8 – making it the most affordable UK area to buy a house.
North Lanarkshire ranked in second place, with a median monthly salary of £2,355 and a median first-time buyer house price of £112,166 – a ratio of 3.97.
Ranking third was Durham County Council, with a median monthly salary of £2,229 and a median first-time buyer house price of £111,454, resulting in a favourable ratio of 4.17.
On the other end of the scale, numerous areas in London emerged as the least favourable options for first-time buyers, with low median salaries and expensive properties.
Kensington and Chelsea and Hammersmith and Fulham topped the list, with a median first-time buyer house price of £792,899, and monthly earnings of just £3,261.
The top 10 most expensive areas were all located in London: Westminster, Camden and City of London, Haringey and Islington, Hackney and Newham, Brent, Hounslow, and Richmond upon Thames, Barnet, Redbridge and Waltham Forest and finally Enfield.
An expert from L&C Mortgages said: “As house prices have rapidly increased across the UK in recent years, the affordability challenges have only grown.
“Identifying regions with favourable house-to-income cost ratios shows just how regionalised affordability can be and highlights how some first-time buyers may find it easier to get on the property ladder than others.
“Scotland features high up in the list of areas offering numerous areas with more affordable housing prices when compared to earnings.
“On this metric, it looks to have a solid status as the top UK area for affordability for prospective homeowners. “
They added: “Unsurprisingly, London dominated the list of areas where first-time buyers may find it hardest to get on the ladder, highlighting the mismatch between house prices and average earning.
“Additionally, the ranking highlighted the most cost-effective regions in England for first-time buyers were largely to be found in the North East, with Hartlepool, Stockton-on-Tees, and Durham County Council leading the pack.
“That will be welcomed by first-time buyers looking in those areas, and although never easy to get on the ladder, it could at least offer hope to those saving toward their first purchase.”
