Lancashire City Among Cheapest for New Homeowners, Renters

A recent analysis performed by Rightmove, a leading property website in the UK, has named Preston as one of the most affordable cities for first-time homebuyers and renters. This recognition is based on data gathered from over 50 cities across Great Britain. 
 
The research found that the average asking price for homes suitable for first-time buyers (those with two bedrooms or less) in Preston is £112,273. Notably, this figure compares favorably to other regions of the country, where prices are considerably higher. 
 
Furthermore, considering monthly mortgage payments versus rental costs paints an even more attractive picture for prospective homeowners in Preston. The average monthly mortgage payment comes out at approximately £416 while renting averages around £787 per month, resulting in a notable difference of -£371. 
 
Tim Bannister, property expert at Rightmove, commented on these findings: "These latest figures highlight why so many people remain determined to get onto the ladder." He mentioned that due to rising rental costs throughout Great Britain, owning a house remains appealing despite higher mortgage rates. 
 
Accordingly, longer-term mortgages have become increasingly common amongst new buyers looking to maintain affordability while reducing their monthly payments. However, he also warned new buyers about understanding what they're paying in interest compared to their actual mortgage amount. 
 
Bannister continued by stating that without significant improvements made towards providing good quality and affordable rental properties within Great Britain, owning personal homes will continue to be seen as an ultimate goal for those who can afford it, highlighting both supply issues within the British housing market and current financial conditions that make buying more attractive than renting. 
 
Rightmove's calculations were based on several assumptions, including that first-time buyers in Scotland and Wales would have a deposit of 20% while their English counterparts would put down a 25% deposit, according to statistics provided by UK Finance Data regarding trends amongst first-time buyer mortgages. The repayment was calculated over 35 years. 
 
Interestingly enough, when analyzing the cheapest locations for renting, both Preston and Lancaster were featured in Rightmove's results. The average monthly rental cost in Lancaster is £764, compared to Preston’s £787. 
 
In terms of property prices for first-time buyers (two bedrooms or less), the city of Lancaster has an average asking price of £152,062, while Preston’s remains at a lower £112,273. 
 
Monthly mortgage payments are also higher in Lancaster, with an average payment of approximately £564 compared to Preston's more affordable rate of £416 per month. 
 
This study provides invaluable insight into regional variances within the UK housing market, revealing that cities like Preston offer favorable conditions for those looking to step onto the property ladder or seeking more affordable rental options.