Research from Savills has identified the most affordable UK cities for first-time buyers, with Stoke-on-Trent, Hull and Milton Keynes ranking among the top locations where property prices remain significantly below London levels.
The analysis, which examined property affordability, rent-to-income ratios, and sales price-to-income ratios, comes as average deposits for first homes in Greater London have reached approximately £130,000, according to recent surveys.
Frances McDonald, director of research at Savills, said: “For the past decade we have seen a subtle shift in housing and migration patterns, with graduates increasingly weighing up housing costs alongside career prospects, and some choosing to remain in university towns or move to regional cities where housing costs are lower.”
Stoke-on-Trent leads affordability rankings
Stoke-on-Trent recorded the lowest flat price-to-income ratio at 2.5, with average flat prices of £88,448 and average annual earnings of £35,079. One-bedroom flat rents average £664 per month in the city.
Joe Shenton from eXp estate agents noted that graduates from the University of Staffordshire and Keele University often rent centrally before purchasing in outer areas such as Trentham, where three-bedroom semi-detached properties start at £250,000. Major employers in the area include JCB and ceramics manufacturer Emma Bridgewater.
Hull offers sub-£100,000 entry points
Hull ranked second with average flat prices of £91,815 and a price-to-income ratio of 2.7. Average workplace earnings stand at £34,497, while one-bedroom flat rents average £670 per month.
Matthew Limb of Limb Estate Agents said first-time buyers typically move to established neighbourhoods including the Dukeries, Kingswood and Hessle after initially renting in central areas such as Victoria Dock and the Marina. The city’s major employers include Smith+Nephew, Siemens Gamesa, the University of Hull, and port operations.
Migration patterns shift from London
Maurice Lange, senior analyst at the Centre for Cities thinktank, said London’s population fell below 7 million by the 1970s from 9 million after the Second World War, and subsequent housebuilding has not kept pace with demand as the population has grown again.
The research follows recent expansion of 100% mortgage options by several lenders, aimed at addressing deposit barriers for first-time buyers. The findings also reflect broader rental market trends across English and Scottish cities, where affordability varies significantly by region.
Both McDonald and Lange emphasised that the data represents a “weakening” of London’s pull rather than a reversal, with the capital maintaining its economic dominance. However, the strength of local economies, employment sectors, and housing cost-to-income ratios are increasingly influencing relocation decisions among young workers.
The research assessed cities based on population growth, property affordability metrics, and economic indicators including GDP growth and employment opportunities. Milton Keynes, granted city status in 2022, also featured in the top 10 rankings.
