Analysis of 328 locations in England and Wales has identified the most affordable areas for first-time buyers, with the top 10 cheapest locations predominantly situated in the North of England and Wales. Burnley, Lancashire, has been identified as the cheapest location for those entering the property market, with an average home price of £116,000.
This price is 63% lower than the UK's national average house price of £311,034. County Durham followed as the second cheapest location, with average prices for first-time buyers at £125,000, approximately 60% below the national average.
Other areas making up the top five cheapest locations include Hyndburn and Hartlepool in the North West and North East respectively, and Kingston upon Hull in Yorkshire and The Humber. Buyers in Kingston upon Hull can expect to pay around £131,000 for their first home. Blackpool also emerged as an inexpensive option at £131,250.
Blaenau Gwent in Wales was the seventh cheapest location and the first in Wales to feature in the top 10 list, with properties averaging £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. All locations within the top ten offer homes for £135,000 or less.
The North West region had the highest number of areas in the top ten with four, followed by the North East with three, Wales with two, and Yorkshire with one.
While the north and Wales offer the most affordable options, opportunities also exist in the Midlands and southern England. Bolsover in the Midlands was cited as the cheapest location in that region, with an average property cost of £165,995 and a deposit of £33,559. In the South West, Plymouth was identified as a more accessible option, with average home prices at £214,000 and requiring a deposit of around £42,800. Plymouth ranked 82nd overall in affordability for first-time buyers.
Financial Assistance for Buyers
Data indicates a significant reliance on family support for first-time buyers. Research by Savills suggests that over half of first-time buyers received financial assistance from family members to help fund their deposit. While approximately three in five buyers used their own savings, 53% were aided by family, with gifts totaling £8.3 billion in 2025. Including inheritances, family contributions reached £11 billion.
Twice as many buyers received outright gifts compared to loans. More than half of these gifts came from extended family members, not exclusively parents. The average first-time buyer used £24,261 of their own savings last year, which accounted for about 44% of the required deposit, highlighting the substantial role of external financial assistance in meeting deposit requirements.
Changing Demographics of First-Time Buyers
The demographic of first-time buyers is also shifting, with a notable increase in individuals over the age of 50. Recent data from the Financial Conduct Authority shows a significant rise in first mortgages taken out by those over 51 between 2020 and 2024. In 2020, over-51s took out 5,511 mortgages, a figure that climbed to 7,865 by 2024, representing a 43% increase. This trend suggests that older buyers are increasingly struggling with property prices and affordability, necessitating a later entry into homeownership.