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Getting a foot on the property ladder is exciting, but also unknown and scary. First-time buyers may not know what they need to earn and how much deposit they need to purchase their first home. In this blog we look at the most popular areas for first time buyers and what you would need to earn to purchase there.

The most popular area for first time buyers

The most popular area is in London – the borough of Barking and Dagenham. The average property price for a first time buyer is £300,000 and the type of property is most often a 3-bed terraced.

For this, a first-time buyer will need a deposit totalling £45,000 and earn around £56,667. This can of course be split between 2 incomes if a couple are purchasing together.

Top 10 areas for first time buyers

1. Barking and Dagenham – average price £300,000, deposit £45,000, salary required £56,667, property type 3-bed terraced house
2. Tower Hamlets – average price £425,000, deposit £63,750, salary required £80,278, property type 2-bed flat
3. Newham – average price £340,000, deposit £51,000, salary required £64,222, property type 2-bed flat
4. Reading – average price £240,000, deposit £36,000, salary required £45,333, property type 2-bed flat
5. City of Wolverhampton – average price £145,000, deposit £21,750, salary required £27,389, property type 3-bed semi
6. Thurrock – average price £260,000, deposit £39,000, salary required £49,111, property type 3-bed terraced
7. Greenwich – average price £340,000, deposit £51,000, salary required £64,222, property type 2-bed flat
8. Luton – average price £215,000, deposit £32,250, salary required £40,611, property type 3-bed semi
9. Southwark – average price £435,000, deposit £65,250, salary required £82,167, property type 2-bed flat
10. Crawley – average price £255,000, deposit £38,250, salary required £48,167, property type 3-bed terraced

Regional hotspots

Below are the most popular first time buyer locations in each region, with the average price of property a first time buyer pays:

East Midlands: City of Leicester, £175,000

East England: Thurrock, £260,000

London: Barking and Dagenham, £300,000

North East England: Newcastle upon Tyne, £120,00

North West England: Oldham, £120,000

Scotland: Midlothian, £145,000

South East England: Reading, £240,000

South West England: City of Bristol, £225,000

Wales Casnewydd: Newport, £140,000

West Midlands: City of Wolverhampton, £145,000

Yorkshire: Bradford, £110,000

What Zoopla say

Research Director at Zoopla, Richard Donnell, says “First-time buyers are the largest buyer group in the housing market, accounting for close to two in every five sales. Our analysis shows that first time buyers are seeking out the most affordable areas which deliver the best value for money in terms of accessibility and property type and size. In the highest-priced markets, first-time buyers are seeking two-bed homes but across large parts of the country first-time buyers are seeking out three-bed homes.”