In the UK, the average house price as of February 2023 was £288,000, which means that property prices rose by £16,000 on average in the past 12 months. With that being said, property prices in the UK did peak in November 2022, so the current average price would be around £5,000 lower than peak levels. From February 2022 to February 2023, the average price of property in the UK has increased by around 5.5 per cent, but in the first quarter of 2023, the average price of property in the UK has fallen month-on-month. Right now, the average house price in England is around £308,000, a mere £180,000 in Scotland, approximately £175,000 in Northern Ireland and around £215,000 in Wales, hence bringing the national average to £288,000. So, using the national average house price based on market calculations, what can you afford to buy?
To figure out what you can afford to buy, you first need to figure out how much you can afford to spare. Every bank and lender has certain criteria that buyers need to fulfill in order to qualify for a pre-mortgage approval and then a mortgage. According to estate agents in Doncaster, as a rule of thumb, a potential buyer should only take out a mortgage that he or she can afford to pay back comfortably.
On average, lenders will usually allow a potential buyer to borrow money worth 4 times his or her income. So, if you earn around £40,000 a year, then you may be able to secure a mortgage worth £160,000. If we assume a 10 per cent deposit, of £16,000, then the total amount a potential buyer needs to be able to afford works out to £176,000. It is always a good idea to get in touch with a financial expert to figure out your finances before you take out a mortgage, otherwise, you may end up burning a hole in your pocket. Now that you have figured out how much you can afford, it is time to figure out where you can afford to buy properties and exactly what you can afford to buy based on the national average. Here is a list of some of the most affordable properties in the UK that may be well under the national average house price.
Gateshead, a town as well as a metropolitan borough in Tyne and Wear, is one of the most sought-after areas among young families. It is one of the most affordable places to buy property in the UK as the average price of property here is around £155,375. And, since property here is below the national average it should be quite easy for new buyers and first-time buyers to climb onto the property ladder by buying property in Gateshead.
Sunderland is another port city in Tyne and Wear that has put itself on the map for affordable housing. With the average price of property ranging around £157,344, it is quite easy to find a good home in Sunderland. In fact, Sunderland has been voted as one of the best places to live in the UK based on factors such as income, house prices and low crime rates.
Wigan is a very popular town in Greater Manchester with the average price of property reaching £167,730. With great transportation links and easy access to the city coupled with the feeling of a countryside, Wigan has become quite popular among buyers in the past few years, especially during the Covid-19 pandemic. Wigan is considered to be one of the greenest areas in England, with over 70 per cent green space making this a very popular area among buyers.
St Helens is a borough in England that has great transport links with Liverpool and Manchester. With the average price of property at £169,332, St Helens is quite an affordable area to buy a home. With a number of trendy streets and expensive properties, St Helens is becoming very popular among buyers and investors alike.
Doncaster is a popular city in South Yorkshire that has become a new favourite among buyers. With low crime rates, affordable housing, great transportation links and some outstanding schools, Doncaster has certainly become a buyer favourite. Here, the average cost of property is around £175,872, making it well below the national average.