"With the average deposit on a home increasing to over £60,000, many buyers, especially those stepping onto the property ladder for the first time, will be casting their nets wider in order to purchase a home that meets their expectations"
- Mary-Lou Press - NAEA Propertymark
Leek in the West Midlands has emerged as the most affordable market town for first-time buyers, with average property prices at £191,359, according to the latest figures from Lloyds. For all buyers, Immingham in Yorkshire and the Humber offers the lowest average at £176,918.
Across the board, average house prices in England’s market towns now stand at £363,456. This marks a 5% increase over the past year and a 24% rise over five years.
First-time buyers are paying an average of £280,582 to purchase in these traditional locations, up 2% on last year and 26% since 2020. This steeper increase may reflect the shifting property search habits prompted by the pandemic, particularly among first-time buyers who had wider geographic flexibility and access to schemes such as Stamp Duty relief. As a result, more properties in desirable rural and semi-rural towns became viable, raising demand in these areas.
Andrew Asaam, homes director at Lloyds, reflected on the enduring appeal of these towns. “It’s no wonder market towns have stood the test of time with home-buyers, whether people are stepping onto the first rung of the housing ladder, or are making a move to their next home,” said Asaam. “These charming locations are filled with historic landmarks and architecture, quaint charm and community spirit, offering a calmer pace of life, often within the reach of bigger towns and cities."
"That ‘best of both worlds’ feeling has led to house prices in these areas holding up – in fact, the priciest market towns are amongst the most expensive locations, outside of Greater London, to settle into a home. It’s worth looking beyond the most popular spots as some market towns are great value for money while offering the farmer markets, independent shops and community spirit that make these historic places so appealing.”
Leek leads the list for first-time buyer affordability, and six of the ten most affordable market towns for this group are located in the Midlands. This regional strength is offering first-time buyers more room to stretch their budgets while securing a place in desirable surroundings.
Lloyds has also announced the extension of its First-Time Buyer Boost, with an additional £4 billion in lending now available. The scheme allows for loans of up to 5.5 times income, aiming to ease some of the affordability pressures facing prospective homeowners.
For Amy Flynn, a 26-year-old buyer who recently purchased in Bromsgrove, location was key. “When looking to buy our first home, location was very important to us,” said Flynn. “We chose Bromsgrove, a market town, primarily for its connectivity, allowing us to easily commute to work and visit family and friends. Beyond logistics, we were drawn to the town's atmosphere. It has plenty of supermarkets, coffee shops, parks, pubs, gyms, barbers, nail salons and lots of charity shops to browse, everything a young couple could need.
Plus, the Saturday morning market is an excuse to get out of the house early on the weekend and treat myself to a fresh pastry or bunch of flowers. After our university years and busy social lives, having these conveniences and the ability to host friends in our hometown is important to us, to help us entertain and create more memories.
"Being within walking distance of everything we need means we don’t need to spend as much money on petrol or delivery, helping us to save those extra pennies which are very important when navigating bills and expenses for the first time. Choosing Bromsgrove means we can still enjoy a fulfilling lifestyle while managing the financial responsibilities of buying our first home.”
Not all market towns offer the same level of affordability. Hitchin in Hertfordshire (pictured) is the most expensive for first-time buyers, with an average price of £410,366. For all buyers, Beaconsfield in the South East is the priciest, averaging £839,468.
Mary-Lou Press, president of NAEA Propertymark, commented on current trends. “More and more people are looking to relocate to picturesque areas across the UK in order to not only get more for their money, but also be part of a flourishing community within proximity to busier cities for work and social commitments,” noted Press. “With the average deposit on a home increasing to over £60,000, many buyers, especially those stepping onto the property ladder for the first time, will be casting their nets wider in order to purchase a home that meets their expectations, but for a more affordable price compared to those located in busier cities.”
