London and Luton among most expensive places for first-time buyers
PUBLISHED: 12:26 05 March 2020 | UPDATED: 14:51 05 March 2020
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Luton has been named among the least affordable places in the UK for buyers seeking their first home.
The Bedfordshire town came sixth in a list compiled by digital broker Mojo Mortgages - topped, inevitably, by London.
The first-time buyer affordability index was created by cross-referencing monthly mortgage costs with an area's average income.
Monthly bills, commuting expenses and the price per square metre to buy a house or an apartment in that area were also taken into account.
Newcastle was named the most affordable place for first-time buyers, followed by Aberdeen and Belfast.
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The average property price per square metre in Newcastle was £1,650, while typical mortgage payments made up 29.05 per cent of a buyer's income.
The price per square metre for a property in central London stood at £13,068.95, nearly eight times higher than in Newcastle.
Buyers in the capital will therefore need to earn 45 per cent more than the average monthly net salary to be able to afford their mortgage payments.
In central Luton, the average home cost £4,080.67 per square metre, while mortgage payments made up 68.21 per cent of income.
Richard Hayes, CEO and co-founder of Mojo Mortgages, said: "Getting on the property ladder as a first-time buyer is notoriously difficult, unless you happen to have a few grand stashed away in your savings account or can ask the Bank of Mum and Dad to help with the deposit.
"Our first-time buyer index gives potential home buyers the chance to see where they could buy, and what's affordable for them in some of the most popular towns and cities in the UK."
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