Regional UK cities have emerged as a beacon of hope for first-time buyers struggling to save for a deposit in the face of sky-high property prices in London. New research from Savills reveals that cities such as Stoke-on-Trent, Hull, and Milton Keynes offer significantly more affordable options, with lower average house prices and rent-to-income ratios.
The analysis highlights the stark contrast between property affordability in regional cities and Greater London, where average deposits for first homes have surged to approximately £130,000. This has led to a noticeable shift in migration patterns, with graduates and young professionals increasingly considering housing costs alongside career prospects when deciding where to live and work.
Stoke-on-Trent stands out as the most affordable city for flat purchases, boasting a low flat price-to-income ratio of 2.5. The average price for a flat in the city is £88,448, compared to an average annual earning of £35,079. One-bedroom flats in Stoke-on-Trent typically rent for £664 per month.
Hull ranks as the second most affordable city, with average flat prices of £91,815 and a price-to-income ratio of 2.7. The average workplace earnings in Hull are £34,497, and one-bedroom flat rents average £670 per month.
Frances McDonald, director of research at Savills, notes that for the past decade, there has been a subtle shift in housing and migration patterns. Young people are now increasingly weighing up housing costs alongside career prospects, with some opting to remain in university towns or relocate to regional cities where housing costs are more manageable.