Burnley Tops List as Cheapest Area for First-Time Homebuyers in England and Wales

Burnley in Lancashire has been identified as the most affordable location for first-time buyers in England and Wales, with an average property price of £116,000. This figure represents a 63% saving compared to the UK's national average house price of £311,034. The findings, based on official data analyzed by Barratt Homes, compare 328 areas across the country.

County Durham follows as the second cheapest location, with first-time buyers typically paying £125,000 for a home, approximately 60% less than the national average. Other areas in the top five include Hyndburn, Hartlepool, and Kingston upon Hull, where properties for first-time buyers average around £127,000, £130,000, and £131,000 respectively. Blackpool also offers an entry-level home price of approximately £131,250.

The North West region featured the most locations within the top ten cheapest areas, with four entries. The North East had three, Wales had two, and Yorkshire had one.

Blaenau Gwent in Wales was the seventh cheapest location overall and the first Welsh area to appear in the top ten, with average prices at £132,500. Sunderland ranked eighth at £134,000, followed by Pendle in the North West and Merthyr Tydfil in Wales, rounding out the top ten with prices at or below £135,000.

Areas in southern England and the Midlands were notably absent from the top ten cheapest locations. However, opportunities do exist in these regions. Bolsover was named the cheapest location in the Midlands for first-time buyers, with an average property cost of £165,995 and a deposit of £33,559. In the South West, Plymouth offers a more accessible option, with average home prices at £214,000 and an average deposit of around £42,800, ranking as the 82nd most affordable location nationally.

Beyond affordability metrics, research indicates a significant reliance on familial financial support for many aspiring homeowners. More than half of first-time buyers received financial assistance from family members to help fund their deposit, according to Savills. While three in five buyers used their own savings, approximately 53% were aided by family. These familial contributions totaled £8.3 billion in 2025, a figure that rises to £11 billion when inheritance is included, highlighting the role of inherited wealth in property acquisition. More family members than just parents provided this assistance, with outright gifts being twice as common as loans.

Last year, the average first-time buyer used £24,261 of their savings, which represented about 44% of the required deposit for an average first home, underscoring the need for additional financial support for over half of the deposit amount.

An increasing number of individuals over the age of 50 are also entering the property market as first-time buyers. Financial Conduct Authority data shows a 43% increase in first mortgages taken by those over 51 between 2020 and 2024, with 5,511 mortgages issued in 2020 compared to 7,865 in 2024. This trend reflects ongoing challenges with house prices and affordability.

Recent increases in mortgage rates, influenced by inflation and geopolitical factors, have reversed expectations of interest rate cuts by the Bank of England. This situation presents higher costs for those remortgaging or purchasing new properties, emphasizing the importance of seeking competitive mortgage rates and professional advice.