East Ayrshire in Scotland is the most affordable area in the UK for first-time buyers, according to new analysis from Lloyds.
The research is based on average prices paid by first-time buyers across local authority areas.
It comes as affordability continues to limit access to homeownership in many parts of the country, with the data highlighting areas where entry costs are lower.
The findings were published as Lloyds opened applications for a new mortgage product aimed at first-time buyers this morning, offering a £5,000 minimum deposit on properties valued up to £300,000.
In East Ayrshire, the average first-time buyer price is £147,353. The area includes a mix of towns, former industrial communities and rural villages, with housing stock ranging from older properties to newer developments.
The region is within commuting distance of Scotland’s central belt, including Glasgow and surrounding employment centres.
The research shows that the most affordable areas for first-time buyers are concentrated in Scotland and the morth of England, where prices remain below the UK average.
In England, Blackpool is the cheapest local authority area for buyers entering the market, where the average first-time buyer home costs £150,780.
Merthyr Tydfil ranks as the most affordable location in Wales, with first-time buyers paying an average of £156,498, while in Northern Ireland the lowest average price is found in Mid and East Antrim, where a typical first home costs £175,308.
Lloyds said that in these lower-priced areas, monthly mortgage costs under its new product could fall below £1,000, depending on individual circumstances and lending criteria.
Top 10 most affordable UK areas for first-time buyers
| Local area | Region | Average FTB price | Monthly mortgage cost* |
|---|---|---|---|
| East Ayrshire | Scotland | £147,353 | £843 |
| Inverclyde | Scotland | £149,929 | £859 |
| Blackpool | North West | £150,780 | £864 |
| Kingston upon Hull | Yorkshire and The Humber | £151,171 | £866 |
| Na h-Eileanan Siar | Scotland | £155,300 | £891 |
| Hyndburn | North West | £155,911 | £894 |
| Clackmannanshire | Scotland | £156,041 | £894 |
| Merthyr Tydfil | Wales | £156,498 | £898 |
| South Tyneside | North East | £157,551 | £904 |
| West Dunbartonshire | Scotland | £159,437 | £915 |
*Monthly mortgage cost based on a £5,000 deposit mortgage assumption.
Amanda Bryden, head of mortgages at Lloyds, said: “Our research shows there are still genuine pockets of value for first
particularly for those with an open time buyers, mind who are willing to be flexible on location and property type.
“With ongoing cost of living pressures and wider economic uncertainty, it’s completely understandable that some people are feeling cautious. But there are opportunities out there, and for many buyers, that flexibility can make a real
difference.
“What matters most is finding a mortgage that works for your own budget and circumstances, not just today, but over the long term. Lower deposit options, such as our new £5k deposit mortgage, could help some people get on the ladder years earlier than they might expect.
“Speaking to a mortgage expert early can help. It gives you a clearer picture of what you can comfortably afford, and the confidence to make choices that feel right for you, whatever the wider market might be doing.”
The average age of a first-time buyer in the UK is now 32, two years older than a decade ago but
unchanged over the past year.
However in some parts of the country, buyers are getting on the ladder much earlier. In the 10 areas with the youngest first time buyers, the average age fall s to as low as 27 – highlighting pockets of affordability that are proving particularly attractive to Gen Z.
James Nightingall of property search service HomeFinder AI, said: “We are encountering more first-time buyers who set out to purchase a home in central London but completely change their mind to buy in outer boroughs or more affordable spots. More than ever, buyers want value for money and many are willing to compromise on location.”
Mary-Lou Press, president of NAEA Propertymark, commented: “While affordability challenges remain a significant hurdle for many aspiring homeowners, this research highlights that there are still parts of the UK where first-time buyers can realistically take their first step onto the property ladder.
“Local market knowledge is more important than ever, as affordability can vary dramatically between regions and even neighbouring towns. Areas across Scotland, the North of England and Wales continue to offer comparatively accessible price points, particularly for buyers willing to broaden their search criteria or consider emerging locations with strong transport links and regeneration potential.
“However, affordability is about more than headline house prices alone. Buyers must also consider mortgage repayments, energy efficiency, local employment opportunities, commuting costs and the long-term sustainability of homeownership. Low-deposit mortgage products may help unlock access for some households, but it remains vital that buyers fully understand the financial commitment involved and seek professional advice before proceeding.
“The fact that younger buyers are entering the market earlier in certain regions also reflects how local affordability and housing supply can directly influence opportunities for Gen Z. A healthy housing market relies on a sufficient mix of homes at different price points, alongside policies that support long-term supply and consumer confidence.
“Property professionals continue to play a crucial role in guiding first-time buyers through an increasingly complex market, helping consumers make informed decisions based on their personal circumstances and local market conditions.”
Lloyds set to launch £5,000 deposit mortgage for first-time buyers
