Inverclyde in Scotland has been named the most affordable area in the UK for first-time buyers, according to Halifax.

The average house price-to-earnings ratio is 3.2 in Inverclyde, which means the average house costs roughly 3.2 times typical annual earnings in the area. Scotland dominated the top five places on the list, with East Ayrshire, West Dunbartonshire, Na h-Eileanan Siar and Clackmannanshire also being named as most affordable for first-time buyers.

London dominated the list of areas that are most unaffordable, with Hammersmith and Fulham having a price-to-earnings ratio of 10.2, which means the average house costs roughly 10.2 times typical annual earnings. You can see the full list of most and least affordable places for first-time buyers below.

Halifax also revealed how the number of first-time buyers jumped by nearly a fifth last year. There were 341,068 first-time buyers last year, up 19% compared with 2023. The year 2023 saw first-time buyer numbers drop off by 22% annually, in the tough mortgage rate environment.

But despite the rebound, last year’s estimated total was not as big as the 369,870 first-time buyers recorded in 2022. The average deposit they are stumping up is £61,090, to buy a home valued at £311,034 typically. Halifax said the average first-time buyer is 33 years old, two years older than a decade ago when they were 31.

Amanda Bryden, head of mortgages at Halifax said: “Last year saw a big increase in the number of first-time buyers, up almost a fifth from 2023. This likely reflects an improvement in mortgage affordability as interest rates eased and stabilised, providing more certainty for those stepping on to the ladder.

“Many are still teaming up to make the numbers work, with most buying homes jointly. This makes sense given the average deposit of £61,090 and an average starter home price of £311,034, which can be a stretch for those with a single income.

“It’s not surprising the average first-time buyer is now 33 years old, the oldest in the last two decades. Despite the challenges of saving for a deposit and rising house prices – up 8% in 2024 – it’s encouraging that first-time buyers still account for more than half of all new mortgages.”

The research was based on data from the Halifax’s own housing statistics database, figures from trade association UK Finance and official earnings data. Ms Bryden added: “Looking ahead we expect modest house price growth in 2025, but upcoming stamp duty threshold reductions won’t make things any easier in the short term for first-time buyers.”

Here are the most affordable UK local authority areas for first-time buyers, according to Halifax, with the average house price-to-earnings ratio:

Here are the least affordable UK local authority areas for first-time buyers, according to Halifax, with the average house price-to-earnings ratio:

Here are average first-time buyer house prices in 2023, followed by average first-time buyer house prices in 2024 and average deposits in 2023 followed by 2024, according to Halifax.

Here is the average age of first-time buyers in 2014 followed by 2024, according to Halifax.

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