Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Savills Research Highlights Most Affordable UK Cities for First-Time Buyers

Research from Savills has identified Stoke-on-Trent, Hull, and Milton Keynes as some of the most affordable cities in the UK for first-time buyers. The analysis compared property affordability, rent-to-income ratios, and sales price-to-income ratios, revealing that these regional cities offer significantly lower entry points to the property ladder than London.

In Greater London, average deposits for first homes have reached approximately £130,000, according to recent surveys. In contrast, regional cities such as Stoke-on-Trent and Hull present more accessible options for those looking to buy their first property.

Stoke-on-Trent and Hull Lead Affordability Rankings

Stoke-on-Trent recorded the lowest flat price-to-income ratio at 2.5, with average flat prices of £88,448 and average annual earnings of £35,079. The average monthly rent for a one-bedroom flat in the city is £664. Hull ranked second, with average flat prices of £91,815 and a price-to-income ratio of 2.7. Average workplace earnings in Hull are £34,497, and one-bedroom flat rents average £670 per month.

The research notes that in Stoke-on-Trent, graduates from local universities often rent centrally before purchasing in outer areas such as Trentham, where three-bedroom semi-detached properties start at £250,000. In Hull, first-time buyers typically move to established neighbourhoods after initially renting in central locations.

Regional Trends and Market Implications

The Savills analysis follows the recent expansion of 100% mortgage options by several lenders, aimed at addressing deposit barriers for first-time buyers. The findings also reflect broader rental market trends across English and Scottish cities, where affordability varies significantly by region.

The research assessed cities based on population growth, property affordability metrics, and economic indicators such as GDP growth and employment opportunities. Milton Keynes, which was granted city status in 2022, also featured in the top 10 most affordable cities for first-time buyers.

For letting agents and inventory clerks, these trends highlight shifting demand patterns, with more young workers and graduates considering regional cities due to lower housing costs and strong local employment sectors. The data suggests that affordability and local economic strength are increasingly influencing relocation decisions among first-time buyers.