Scotland offers best cities for first-time buyers
Scottish cities make up 40 per cent of the top 10 best cities for first-time buyers, with Glasgow, Dundee and Aberdeen taking the top three spots.
According to Aldermore’s first-time buyer appeal index, which analyses 50 cities using 10 indicators across property and lifestyle, Glasgow has an overall score of 77, followed by Dundee with 71 and Aberdeen with 70.
Edinburgh has taken the 1oth position with an overall position of 55.
The report noted that first-time buyers in Scotland were getting over the initial hurdle of raising a deposit more easily than other areas as smaller average deposits to income ratio are needed.
It added that Scottish cities offer good lifestyle opportunities, competitive pay, good commuting times and range of restaurants and bars.
In Glasgow the average first-time buyer property is £158,310 and this is projected to increase annually by seven per cent in the coming years.
Edinburgh property prices are higher at £268,562, requiring a higher deposit of £67,224 compared to Glasgow of £32,385.
Edinburgh has fallen from fifth to 10th, compared to last year but still has good lifestyle opportunities and a large graduate workforce.
Other cities in the top 10 are from the North West, North East, Wales and East Midlands.
These include Manchester in fourth position, a rise from 11th last year. This is due to lifestyle considerations, competitive salaries and promising job prospects.
The buying price in Manchester is lower at £218,503 and annual house prices are expected to rise 6.8 per cent in the next few years.
Liverpool takes fifth slot followed by Newcastle in sixth, Swansea in seventh, Derby in eighth and Newport in ninth.
Derby has climbed into the top 10 this year due to affordable purchasing opportunities but does not rate as well for commute times and local nightlife.
The report continued that Southern cities in the UK failed to make the top 10 for the second year in a row due to lack of affordable housing.
‘First-time buyers have has a challenging year’
Jon Cooper, head of mortgages at Aldermore, said: “First-time buyers have had a challenging year, facing higher interest rates and increased market uncertainty. It’s therefore understandable that some people are questioning whether or not to put their homebuying plans on the backburner.
“However, as we can see, there are still fantastic opportunities available in the UK, with many regions not only offering healthy returns on properties but are also fulfilling key lifestyle considerations, which for some, is just as important in the homebuying search.
“Becoming a homeowner is a wonderful step forward in a person’s life, and for many is a rite of passage. Despite the current environment, first time buyers can still realise their homebuying dreams.”