Preston features in a list of the most affordable locations in England for first-time buyers according to new figures released in line with the launch of the government’s new First Homes scheme.Advertisement
Compiled by online mortgage broker Mojo Mortgages, the First Homes scheme affordability index looked at various factors affecting home affordability in 2021 including house prices, average annual salary and monthly take home pay to work out where in England was most and least affordable.
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Based on the average monthly mortgage payment as a percentage of income*, Preston was the 17th most affordable location in England for first-time buyers with the average monthly mortgage repayment taking up 22.01 per cent of a couple’s take home pay. This is based on an average property price in the city of £211,040 and an average annual salary of £26,724.
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Bradford (14.30 per cent) topped the list of affordable locations, while Oxford (49.37 per cent) was the least affordable.
The figures have been released following the launch of the government’s First Homes scheme; designed to help first-time buyers and key workers onto the property ladder in their local areas when they might otherwise have had to move to another city to afford their first home.
First Home properties will be priced at a discount of at least 30 per cent of the original market value to allow more affordable deposits and mortgages with prices being capped at a maximum of £250,000 (£420,000 in Greater London). The discount will apply to the lifetime of the property meaning that same percentage discount will apply when the home is resold in the future.
*Based on a 10 per cent deposit with a mortgage term of 30 years at 3 per cent interest.
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