Oxford is the least affordable location in England for first-time buyers according to analysis of house prices and average income by Mojo Mortgages.

The broker looked at house prices to calculate estimated monthly mortgage repayments and then compared this to local average annual salaries and monthly take home pay to work out where in England was most and least affordable.

In Oxford, average monthly mortgage payments would account for 49.37% of a couple’s take home pay. 

This is based on an average property price in the city of £540,005 and an average annual salary of £31,232.

At the other end of the scale, Mojo found that Bradford was the most affordable location, with mortgage payments accounting for just 14.3% of This is based on an average property price of £145,981 and an annual salary of £28,790.

Among the other locations that were least affordable for first-time buyers were Bath, where mortgage payments account for 47.65% of earnings and London, where the figure is 47.12%.

These are followed by Reading, Poole, Cambridge, Brighton, Slough, Cheltenham and then Exeter. 

In each of these locations mortgage payments on an average-priced property make up more than 35% of typical local earnings.

After Bradford, the other most affordable locations in England were Blackpool where typical mortgage payments account for 15.94% of local earnings, Stoke-on-Trent where its 17.35%, Sunderland at 17.56%, Middlesbrough at 17.7%, Hull at 17.72%, Carlisle at 17.82%, Durham at 18.1%, Liverpool at 18.56% and Bolton at 19.19%.

Regardless of location, the government’s First Homes scheme, offering discounts of between 30-50% on new homes, could make a significant difference to a first-time buyer’s monthly outgoings as well as helping to lower the deposit requirements.

For example, Londoners buying a home under the scheme, could pay around £766 less a month on their mortgage repayments compared to those buying on the open market, taking their housing costs as a percentage of income from 42.17% to 32.97%.

Money.co.uk mortgage expert Nisha Vaidya says: “A home is one of the largest purchases you will make and it can be difficult to understand how much you can afford. 

“There are many factors, like your salary, regular outgoings, and debt-to-income ratio that will impact whether a home is within your reach.

“A good rule of thumb is to allocate no more than 35% of your gross income to your monthly mortgage repayments. 

“Any more than this and you could become ‘house poor’, where you own a house, but lack the funds to do other important things such as saving money or going on holiday.”

Mojo director of mortgages Cassie Stephenson says: “While of course it’s important to remember the 30%+ discount will apply throughout the lifetime of the property and will apply when you eventually sell for the first time, a First Homes scheme property is still very much worth considering, regardless of location as an option for first-time buyers looking to get onto the property ladder.

“The savings available – particularly allowing first-time buyers access to higher LTV mortgages through reduced deposits – could also mean better access to lower interest rates and improved overall savings across the lifetime of a mortgage. 

“Plus of course, purchasing a home is a significant long term investment towards your financial future as opposed to lining a landlord’s pocket.

“We’re excited to see how this new scheme develops over the coming months as new properties and developments continue to crop up across England.”