The North East’s Hidden Gem for First-Time Buyers
As a first-time buyer, finding the perfect location can be a daunting task. But, did you know that the historical city of Durham in the North East has been named one of the cheapest places for first-time buyers in Britain? According to a new analysis, Durham has been ranked among the likes of Sunderland and Hull, with an average asking price of £125,957 for a first-time buyer property.
The historic city of Durham, a hidden gem for first-time buyers
But what makes Durham so attractive to first-time buyers? For starters, the average monthly mortgage payment in Durham is £467, which is significantly lower than the average monthly rental payment of £796. This means that the mortgage vs rent difference in Durham totals to -£328, making it an attractive option for those looking to get on the property ladder.
A Wider Picture
When it comes to first-time buyers applying for a mortgage, data from UK Finance shows that the average deposit size in Scotland and Wales is 20%, while in England it is 25%. More first-time buyers are choosing longer repayment terms to improve their affordability. Despite average mortgage rates currently being slightly higher than at this time last year, there has been more stability since rates peaked in July 2023, which has helped those looking to move at the start of this year.
Mortgage rates have stabilized since peaking in July 2023
The Cost of Renting vs Buying
The cost of renting a two-bedroom or smaller home has increased by 39% in the last five years, versus a 19% jump in the cost of buying a two-bedroom or smaller home. Even if a first-time buyer had a smaller 15% deposit and wanted to repay their mortgage over 25 years rather than 35 years, it would still be cheaper to pay a mortgage than rent in 39 out of Britain’s 50 largest cities, outside of London.
The cost of renting vs buying a two-bedroom or smaller home
Conclusion
Durham’s affordability and stability make it an attractive option for first-time buyers. With its rich history and picturesque surroundings, it’s no wonder that Durham has been named one of the cheapest places for first-time buyers in Britain. So, if you’re a first-time buyer looking for a great deal, Durham is definitely worth considering.
Durham Cathedral, a symbol of the city’s rich history
