Woman looking into estate agents windowDespite mild improvements in the mortgage market, recent figures have revealed a grim state of affairs for first-time buyers, with June recording the lowest levels of first-time buyer activity in a year and a half.

The market is more promising if you have equity or a home to sell to take the next step. First-steppers are unfortunately stuck at the bottom and having difficulty reaching the first rung of the property ladder.

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However, it's not all bad news as a study has revealed the most affordable cities in the UK for first-time buyers. With an impressive 98% of all homes within the financial reach of first-time buyers, the city of Hull has taken the title of most affordable place in the UK.

The research, conducted by Adzuna.co.uk, calculated the affordability of areas by looking at the average salaries for the top 50 cities in the UK. This was then compared to property prices as a guide for house hunters.

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Go west

The West Midlands featured heavily in the most affordable cities list with Dudley, Stoke-on-Trent and Birmingham all making an appearance. The study revealed that while these areas were among the most affordable (nine out of ten couples could afford properties in each of these areas), renters were also in a good position with 96% of rental properties within the budget of the average couple.

Despite its reputation for sky high house prices, London, surprisingly, doesn't take the top spot. The capital's housing market has remained largely buoyant due to overseas interest but the comparatively high earnings of Londoners against property prices mean London came in at the fifth least affordable city in the country.

Least affordable

The title of least affordable city went to Guildford where just 25.87% of homes were deemed affordable for first-time buyers. The survey revealed that the average home now sells for seven times the average earnings with a price tag of £448,000.

Cambridge, Oxford and High Wycombe took the second, third and fourth spots respectively. The most drastic changes in affordability were registered in Plymouth and Cambridge, with an 8% decline in affordable property over the last five months.

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The most affordable cities for first-time buyers

Name of City % of homes within budget *
Hull 98.7%
Glasgow 95.9%
Dudley 90.9%
Stoke-on-Trent 90.2%
Birmingham 89.4%
Wolverhampton 88.7%
Luton 88.3%
Belfast 87.7%
Middlesbrough 87.1%
Milton Keynes 85.65%


The least affordable cities for first-time buyers
Name of City % of homes within budget *
Guildford 25.87%
Cambridge 26.24%
Oxford 26.29%
High Wycombe 38.94%
London 42.71%
Maidstone 46.36%
Brighton 46.98%
Plymouth 54.11%
Slough 56.84%
Cardiff 64.53%

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