Rightmove – Mortgage Finance Gazette

Analysis by the website does not account for regional variations in earnings, but looks at average asking prices on properties with two bedrooms or fewer, which are commonly bought by first-time buyers.

It found that average mortgage payments for first-time buyers in Aberdeen would be £406 per month, assuming a 20% deposit and a term of 35 years.

Bradford is the second cheapest city to be a first-time buyer, with an average asking price of £107,929, and Sunderland is the third cheapest, at £111,263.

This compares to an average asking price of £501,934 and monthly mortgage payments of £1,862 for an equivalent-sized property in London, the most expensive location for first-time buyers.

Outside the capital, St Albans is the most expensive city, with an average first-time buyer asking price of £391,964 and mortgage payments of £1,454.

This is followed by Cambridge and Winchester.

For tenants, Carlisle is the cheapest city with the average advertised rent on two-bedroom or smaller property now £607 per month.

This compares to £2,264 per month in London for a property of the same size.

Oxford is the next most expensive city for tenants outside the capital with average rents of £1,561 per month for homes with two bedrooms or fewer.

Paying a mortgage is cheaper than renting in all of the UK’s biggest cities, Rightmove found.

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.

Rightmove property expert Tim Bannister says: “These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates.

 “Longer mortgage-terms are becoming more common as a way to improve overall affordability and reduce monthly payments, though first-time buyers should be aware of what they are paying in interest compared with their actual mortgage. 

“Without improvements to the supply of good quality, affordable rental homes in Great Britain, owning your own home is likely to continue to be the end-goal for those that can get their deposit together, and borrow what they need to from a mortgage lender.”