"For singletons, buying a first home can feel a little bit like dating and just like dating, first impressions matter"
- Daniel Copley - Zoopla
The latest analysis from Zoopla has revealed that Aberdeen in Scotland is the most affordable area for singles when it comes to buying a home in Great Britain.
Aberdeen buyers will need an average of £510 per month to meet monthly mortgage payments for a one or two-bedroom home, based on an average value of £119,350. This equates to 16% of the area's average monthly salary of £3,280.
Whilst Edinburgh tops the list of the least affordable cities for single homebuyers in Scotland, affordability in the city has improved over the last 12 months as a result of slowing house price growth and rising salaries.
Northern England found to be the most affordable region for single buyers
Liverpool has been named the most affordable city for single Brits in England. To buy a one or two-bedroom home valued at £130,800, singles will need to set aside an average of £540 for monthly mortgage payments, 18% of their average monthly salary (£2,980).
Sheffield and Newcastle make the top five on the list of affordable cities for single Brits with a one or two-bed home valued at £156,990 and £150,360 respectively. Single buyers in Sheffield will need to allocate £640 or 20% of their monthly salary (£3,140) to mortgage payments, with those in Newcastle seeing this increase to 21% of their monthly salary (£2,990).
On the other end of the scale, Manchester and York are amongst some of the least affordable areas in the North of England for single homebuyers. A one or two-bed home in Manchester will cost on average £197,400, with mortgage payments of £810 accounting for 29% of monthly salaries (£2,810). In York, the average value of a one or two-bed home currently sits at £263,000, with mortgage payments of £1,070 accounting for 38% of monthly salaries (£3,080).
Affordability in the South improves for single buyers
Over the last 12 months, house prices have risen by just under 1.5% in southern England (excluding London) however, this growth has been lower than earnings growth (5.6%), helping to increase affordability in some areas. Bristol in the South West, Oxford, Portsmouth in the South East and Cambridge in the East of England are amongst the most improved cities for affordability.
In Bristol, the average value of a one or two-bed home comes in at £302,570. Affordability in the city has been improved by the slowdown of house price growth and increased average salaries. Single buyers will need to set aside £1,210 in mortgage payments, 36% of their monthly salary (£3,350).
In Oxford, a one or two-bed home is valued at £364,430 and is the second most improved city for affordability. Here, single buyers will need to set aside £1,470 in mortgage payments, 42% of average monthly salaries (£3,480).
Single Londoners see monthly mortgage payments of at least £1,000
Whilst London is notorious for some of the highest house prices in the country, with average mortgage payments in even the most affordable areas over £1,000 for a one or two-bed home, some boroughs in the city are more affordable for single buyers.
Havering in the East of London is the most affordable borough in the city with average house values coming in at £306,480. Here, single buyers will need to set aside £1,090 for mortgage payments, 28% of average salaries (£3,850). This is followed by Croydon where the fantastic transport links into central London will be attractive to single Londoners, who will need to set aside £1,120 in monthly mortgage payments, 30% of average monthly salaries.
“For singletons, buying a first home can feel a little bit like dating and just like dating, first impressions matter," comments Daniel Copley, Consumer Expert at Zoopla.
However, he adds, "It’s important to dig deep into your potential new home as it’s what's below the surface that determines long-term compatibility. Take your time and do your research before making that ultimate commitment to swipe right on a home.”
Tom Bill, head of UK residential research at Knight Frank said: “The rest of the country is closing the gap with London as demand spreads beyond the capital due to affordability pressures, which are being felt more acutely as mortgage rates rise. The gap will narrow rather than close but we expect stronger house price growth in less expensive areas of the UK during the next several years. The push into more affordable areas will be reinforced by the flexibility more commuters have about how and where they live following the pandemic.”
Toby Leek, NAEA Propertymark President comments: “One of the positive trends that emerges on the back of remote working is that it allows most people to relocate to a more affordable or generally more convenient area based on personal choices and lifestyles.
“This report proves useful for those with such flexibility; however, not everyone is able to relocate with ease, and the fundamental issue of unaffordability and undersupply remains across the UK.
“We need a mix of homes of all types of tenures across the country to address this and we hope that the UK Government set the tone for future housebuilding and its sustainability by enacting the Planning and Infrastructure Bill, which should lead to millions of new homes being built at a much quicker pace across England and Wales. The Scottish Government and the Northern Irish Executive also have their respective housing targets, which will help even out house prices across the board in the long-term.”
