Report indicates north best for first-time buyers

September 10, 2026 by Brendan O'Neill

Property Market

A new report has indicated that northern parts of the country represent the most affordable option for first-time buyers.

This report was produced by the specialist mortgage lender Pepper Money. It looks at the cost of buying versus renting in a total of 187 UK locations, based on Office for National Statistics data. What the results show is that buying is a cheaper option than renting in 41% of the locations, with this being particularly true in northern ones.

The place offering the best value for a first-time buyer is Middlesbrough, which scored 82.4 for affordability. The average price of a home in this city stands at £123,831, which would mean monthly mortgage payments of roughly £607. That is over £150 a month less than the cost of renting.

Burnley is the next best location for affordability. The average cost of a house there is £115,953, leading to monthly mortgage payments £114 less than rental payments. Merthyr Tydfil in Wales ranked third, with Cumberland fourth and County Durham fifth.

In terms of regions, it is the North East that ranks highest in terms of affordability for first-time buyers. Northumberland is the sole area in this region where renting is cheaper.

However, the North West also rated well. Buying is cheaper in 69% of its cities and towns. Two where this is the case are Salford and Manchester, where high rents mean buyers can pay over £3,000 less per annum.

This is the kind of information an advisor who has done CeMAP classes in Manchester can offer buyers.