First-time buyers face £10,000 regional affordability divide, Tembo finds
The research found buyers in northern cities would be an average of £8,139 worse off after delaying a purchase for a year, while those in southern cities would be £2,757 better off.
First-time buyers delaying a home purchase could face a £10,000 difference in financial outcomes depending on where they live, according to the latest First-Time Buyer Index from Tembo.
The research found buyers in northern cities would be an average of £8,139 worse off after delaying a purchase for a year, while those in southern cities would be £2,757 better off in the short term by waiting, creating a regional gap of almost £11,000.
Tembo said its quarterly index compares the financial position of someone buying their first home today with someone who continues renting and invests their deposit for another year, taking into account mortgage repayments, rent, house price movements, equity built through repayments and investment returns.
The firm said affordability deteriorated during the second quarter of 2026 as higher house prices, larger deposits and rising mortgage rates offset an increase in the number of homes available to first-time buyers.
Its First-Time Buyer Attractiveness Score fell from 637 to 598 between the first and second quarters, moving from the “High” to “Moderate” category.
The research found house prices increased in 14 of the 21 cities analysed, while deposits and loan-to-income ratios rose in 70% of locations.
Richard Dana, chief executive and co-founder of Tembo, said: “Much of the current debate around regional inequality starts from the assumption that the North is always at a disadvantage.
“Our data tells a more nuanced story. For first-time buyers, many northern cities now offer a far stronger route into home ownership than London and much of the South, allowing buyers to begin building wealth much earlier.”
He added: “That doesn’t mean home ownership is no longer worth pursuing.
“In fact, over the longer term it still remains one of the most effective ways to build wealth.
“But it does underline how uneven the market has become and why first-time buyers increasingly need advice that reflects the realities of where they live, rather than a one-size-fits-all message.”
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