Revealed: the towns where you can buy a home for less than lb200,000

Fewer than a third of areas in England and Wales have average house prices of less than lb200,000, as property prices soar across the nation.

New data from estate agency Savills shows the proportion of electoral wards with average prices below lb200,000 has dropped from 53% to simply 29% in the last decade.

Here, Which? explains where first-time buyers can still find affordable properties and offers advice on choosing the right area to move to.

House price rises see buyers priced out

New research by Savills found that buyers in some parts of England are can not keep pace with ever-increasing house prices.

The estate agency analysed 8,071 electoral wards in Britain, and found that only 29% have average house prices below lb200,000.

This figure is significant, because it is only slightly over the lb196,000 average price paid by first-time buyers to obtain to the property ladder, according to data from Nationwide.

At another end from the price scale, the amount of areas with average prices over lb500,000 has grown significantly in the last decade. This trend continues to be led by rising prices in London, where 54% of wards have average prices above half-a-million pounds.

The graph below shows how the number of wards with house prices below lb200,000 and above lb500,000 has changed in the last Two decades.

How many areas near me have affordable properties?

By analysing the data in a regional level, we are able to get a better concept of how house prices vary round the country.

None of London’s 636 electoral wards have average prices below lb200,000, and only one – Ilford Town – has an average of below lb250,000.

It’s slim pickings in the South East of England, too, where only 2% of wards have prices underneath the threshold.

The chart below shows the percentage of wards in every region of England and Wales with average house prices below lb200,000.

Where can one find a cheap property within my area?

Savills provided us with additional data which shows the number of electoral wards in each local authority of Britain have house prices below lb200,000.

These areas are listed in the interactive table below. Simply click the dropdown arrow at the top of the table to select your region. Once you’ve carried this out, you’ll have the ability to see all the qualifying wards ordered by their average house price, as of September 2021.

If you want to find a specific local authority or electoral ward, you are able to type its name in to the search bar.

N.b. As none of London's 636 electoral wards have average prices below lb200,000 who won’t find this method in the table.

How much of a problem are rising house prices?

House prices have been increasing in a rapid rate, using the latest data from the Land Registry showing a rise of 8.6% year-on-year.

This comes as buyers rush to get purchases over the line prior to the end from the stamp duty holiday, that allows buyers purchasing more expensive properties in order to save as much as lb15,000 in tax.

When house prices rise, however, it’s cash-strapped first-time buyers who miss out.

Lucian Cook of Savills says: ‘[Rising house prices] don't create issues for existing property owners and people seeking to trade up the housing ladder, given both the amount of equity they've in their home and the inexpensive of debt on their mortgage.

‘They'll however continue to present a substantial barrier to prospective first-time buyers, unless the recently announced mortgage guarantee scheme or other initiatives unlock significantly more competitive mortgage finance for all those can not raise a first deposit.’

Will the mortgage guarantee help first-time buyers?

As mentioned above, the introduction of the brand new mortgage guarantee scheme is among the ways the federal government hopes to unlock home ownership for first-time buyers.

The scheme, which launched recently, requires the government dealing with some of the chance of offering 95% mortgages, which disappeared almost entirely throughout the first Covid-19 lockdown last Spring.

So far, the scheme continues to be successful in encouraging banks to relaunch low-deposit deals. By last week, there were 78 95% deals available on the market, compared to just five in March.

The scheme has provided a lift for first-time buyers, but home loan rates remain 1% more expensive than before the pandemic, meaning the price of borrowing is now significantly greater than it was previously.

Are bigger mortgages the answer?

The mortgage guarantee scheme will probably help more first-time buyers obtain a home loan, but it won’t necessarily enable them to keep pace with ever-rising property prices.

Unless house prices fall dramatically (which seems unlikely), buyers will either need bigger deposits or the ability to borrow more income.

When you take out a mortgage, you are able to usually borrow as much as four-and-a-half times your income. The number of mortgages that may be offered at this level or above is regulated by the Bank of England, which will keep an eye on mortgage lending.

Last month, Nationwide made headlines by allowing borrowers having a 10% deposit to borrow up to five-and-a-half times their income, potentially allowing a few with combined earnings of lb50,000 to borrow up to lb275,000 instead of lb225,000.

Boosting borrowing power might be an ideal way of helping first-time buyers buy a home, but it doesn’t solve the long-term issue of rising house prices.

The government has pledged to construct less expensive housing and has relaunched the Help to Buy scheme with new price caps, but many first-time buyers continue to be finding their options are limited.

How to get the best place to buy a home

As we’ve shown, there are still plenty of areas where you can purchase a home for less than lb200,000 in England and Wales, but it’s vitally important to do your research on the best spot to move before taking the leap.

When weighing your options, consider your priorities. For instance, will the town have to be within an easy commute of the city or within the catchment section of an excellent local school, or are you more interested in peace and quiet, and green space?

Our guide on finding the right home includes advice on comparing areas, as well as tips on how to spot an up-and-coming town.

Once you’ve found an appropriate location, our advice on buying a house will walk you through the homebuying process, from arranging viewings to switch and completion.