Burnley has been identified as the most affordable location in the UK for first-time buyers, with average property prices of £116,000, according to a report by Barratt Homes.
The figure is 63% below the UK average house price of £311,034, including London. The findings are based on an analysis of Office for National Statistics (ONS) data, government housing reports and a survey of 660 prospective first-time buyers.
County Durham ranked second, with average first-time buyer property prices of £125,000, followed by Hyndburn at £127,000.
The North West had the largest representation in the top 10, with four locations making the list. The North East followed with three, while Wales had two and Yorkshire and the Humber had one.
The 10 most affordable locations across England and Wales were:
- Burnley, North West – £116,000
- County Durham, North East – £125,000
- Hyndburn, North West – £127,000
- Hartlepool, North East – £130,000
- Kingston upon Hull, City of, Yorkshire and the Humber – £131,000
- Blackpool, North West – £131,250
- Blaenau Gwent, Wales – £132,500
- Sunderland, North East – £134,000
- Pendle, North West – £134,000
- Merthyr Tydfil, Wales – £135,000
No locations in the South or Midlands featured in the top 10. Bolsover was the highest-ranking Midlands location, at 32nd overall, while Plymouth was the South’s most affordable location, ranking 82nd.
The report also examined the challenges facing people preparing to buy their first home. Of the 660 prospective first-time buyers surveyed, 33% said finding a property within their budget was their biggest challenge.
Saving for a deposit was a close second, cited by 31% of respondents. Other concerns included understanding associated costs, understanding mortgage options, finding a suitable property and competing with other buyers.
Finding a home they liked was identified as the biggest challenge by just 8% of respondents, suggesting that affordability remains a greater concern than finding a suitable property.
Barratt Homes highlighted schemes such as its Deposit Boost initiative, which it says matches a 5% deposit up to £25,000, allowing eligible buyers to secure a 90% loan-to-value mortgage with 5% saved.
The study also looked at where prospective first-time buyers would seek mortgage information.
Mortgage brokers were the most trusted source, with 68% of respondents selecting them among their top three sources. Online searches followed at 64%, while advice from family was chosen by 57%.
Friends’ advice was selected by 26%, while 21% said they would use an AI chatbot for mortgage guidance. Social media was the least popular option, at 7%.
Terry Higgins, group managing director at the New Homes Group, said brokers can help buyers navigate lender criteria and mortgage options, particularly those with smaller deposits or tighter budgets.
The findings also indicate that while AI is beginning to play a role in how prospective buyers research mortgages, human advice remains more popular, with mortgage brokers, family and friends all ranking ahead of AI chatbots.
The report, titled First Time Buyer Report 2026, was produced by Barratt Homes using ONS data, government housing reports and a survey of 660 prospective first-time buyers conducted through the OnePulse surveying platform.
