Most reasonably priced cities for first-time consumers revealed and Inverclyde tops the record

Scottish town Inverclyde has been crowned the most affordable spot to snap up a starter home by Nationwide.

The most and least affordable areas for first-time buyers across the country have been listed by Britain’s biggest building society and it says affordability in 70 per cent of local authorities across has improved in the past year.

It analysed first-time buyer house prices in all local authorities in England, Wales and Scotland against the average annual earnings to calculate the most and least affordable spots in each region.

Affordability for first-time buyers has improved in the last year as a swathe of mortgage products designed to get young people on to the first run of the property ladder have flooded to market

But some exclusive areas are still out of reach, with homes in one spot costing almost 14 times an average salary…

Burnley and Hartlepool among most affordable for starter homes

Northern and Scottish hotspots are some of the most affordable areas in the country for a first-time buyer to snap a home, the mutual today reveals.

Inverclyde – which boasts beautiful scenery and a 45-minute commute to Glasgow – tops the list as buyers can secure a home for just 2.9 times their annual income.

Sold prices average around £100,000 for starter properties – a ten per cent deposit is just £9.700.

Outside of Scotland, Burnley is the most affordable area in the North West with a house price to earnings ratio of 2.8. 

In the North of England its Hartlepool at a 2.9 house price to earnings ratio and in the West Midlands, Stoke-on-Trent continues to be the most affordable area with a 3.4 ratio.

Andrew Harevy, senior economist at Nationwide, adds: ‘Kingston upon Hull is the most affordable local authority in Yorkshire and The Humber, with a ratio of 3.0. South of the river, West Lindsey in Lincolnshire is the most affordable part of the East Midlands.

‘Further down the east coast, Great Yarmouth in Norfolk continues to have the lowest ratio in East Anglia and is also the lowest priced area in the region.

‘Meanwhile, on the south coast, Gosport in Hampshire is the most affordable area in the outer south east, with notably lower average prices than elsewhere at around £200,000.

‘Swindon remains the most affordable town in the South West, with a house price earnings ratio of 4.8. Meanwhile in the Outer Metropolitan region, Surrey Heath, which includes Camberley and Bagshot, is the most affordable area, due to relatively high earnings.’

Across London, Bromley – a town in the South East of the capital – is the most affordable local authority to buy a home. 

But properties still cost 6.2 times the average annual earnings in the area, pushing it out of reach for most buyers, especially those hunting for a starter home.

Tom Bill, of estate agent Knight Frank, explains that buyers have been forced to find value in other areas of the country as property price tags in London and the South east leave buyers ever more squeezed.

He adds: ‘Affordability continues to shape the map of house price growth, with regional parts of the country having slowly narrowed the gap with London over the last decade. 

‘With buyers increasingly squeezed by prices in the capital, they have found more value in other parts of the country, which has been made easier by blue chip companies setting up regional operations.’

Glamorous Kensington least affordable

Exclusive Kensington and Chelsea tops the least as the most unaffordable spot as the average home here is some 13.9 times the average annual earning.

The area is home to some of the most expensive properties in the country. 

The price of living in one of these glamorous homes is sky-high and out of reach for nearly all first-time buyers, with a 10 per cent deposit averaging some £100,600, Nationwide reveals.

Outside of the capital, Oxford is the most expensive as properties cost eight times the annual income. In East Anglia, its Cambridge at with a house price to earnings ratio of 7.3, in the Outer Metropolitan area its Spelthorne at 7 and in the south west its South Hams at 6.9.

Mr Harvey says: ‘Spelthorne in Surrey is the least affordable local authority in the Outer Metropolitan region. Close to London, this is prime commuter territory and includes towns such as Staines-upon-Thames, Sunbury-on-Thames and Shepperton.

‘In the South West, South Hams in Devon is a popular tourist location, taking in places such as Totnes, Dartmouth and Salcombe. 

‘However, with average prices nearly seven times average earnings, it is very challenging for local prospective first-time buyers.

‘Meanwhile, in the East Midlands, Derbyshire Dales is one of the highest priced areas, with much of it sitting within the Peak District National Park, including towns such as Matlock, Ashbourne and Bakewell.’

He continues: ‘Another sought after area is Stratford-on-Avon in Warwickshire, which is the highest price location in the West Midlands, with average first-time buyer house prices around £300,000.’

In the North, the least affordable region is Westmorland and Furness as it encompasses swathes of the Lake District. Homes here are priced at 4.1 times the average earnings.

In Scotland, Edinburgh is no longer the least affordable as homes in Midlothian now cost 4.9 times income.

Mary-Lou Press, of estate agency group Propertymark, says: ‘This is a mixed picture for first-time buyers across the country. Significant regional disparities remain.

‘While some parts of the country are becoming more accessible to buyers, high house prices in areas such as London and the south east continue to create substantial barriers, particularly when it comes to saving for a deposit.’