Dundee Emerges as UK’s Most Affordable City for First-Time Home Buyers – With Hull a Close Second
First-time home buyers struggling with the UK’s challenging property market may find their best opportunities in Scotland, according to new research that positions Dundee as the nation’s most affordable city for new homeowners.
The comprehensive study by Housebuyers4u reveals that Dundee offers an unbeatable combination of low property prices and minimal ongoing costs, with average homes priced at £123,000 requiring just a £24,600 deposit and monthly mortgage payments of £544.
Housebuyers4u analyzed the most affordable U.K. cities for first-time homebuyers. Indicators included average house price, 20% down payment, projected monthly mortgage based on a 25-year loan, annual council tax, and the number of homes under 268K GBP with up to two bedrooms relative to city size. Each factor was normalized and combined into a single Affordability Score, where higher values indicate better opportunities for first-time buyers.
What sets Dundee apart from other affordable locations is its exceptionally low council tax rate of just £1,600 annually – significantly lower than most English cities in the top ten.
This combination of reasonable property prices and minimal ongoing expenses creates genuine opportunities for first-time buyers to establish themselves on the property ladder.
| City | Avg. House Price for First-Time Buyers (GBP) | Avg. Deposit (GBP) | Avg. Monthly Mortgage (GBP) | Avg. Council Tax (GBP) | Avg. First-Time Buyer Houses per 10km² | Affordability Score |
| Dundee | 123K | 24.6K | 544 | 1.6K | 16.9 | 99 |
| Hull | 124K | 24.8K | 551 | 2.2K | 78.0 | 91 |
| Sunderland | 125K | 25K | 556 | 2.1K | 14.9 | 90 |
| Blackpool | 120K | 24K | 534 | 2.4K | 62.6 | 89 |
| Stoke-on-Trent | 133K | 26.6K | 591 | 2.1K | 114.6 | 88 |
| Durham | 121K | 24.2K | 538 | 2.6K | 5.8 | 84 |
| Middlesbrough | 128K | 25.6K | 569 | 2.5K | 26.5 | 82 |
| Doncaster | 153K | 30.6K | 680 | 2.1K | 56.3 | 74 |
| Glasgow | 169K | 33.8K | 751 | 1.6K | 38.6 | 72 |
| Blackburn | 148K | 29.6K | 658 | 2.3K | 8.1 | 71 |
The research analyzed multiple factors including average house prices, deposit requirements, monthly mortgage costs, and the availability of suitable properties across UK cities. Each location received an affordability score, with Dundee achieving the highest rating of 99 points.
Northern England dominates the affordability rankings, with Hull, Sunderland, and Stoke-on-Trent all featuring in the top five. Hull follows closely behind Dundee with an average house price of £124,000, while Blackpool offers the cheapest properties overall at just £120,000.
Stoke-on-Trent stands out for property availability, offering 114 affordable homes per 10km² – the highest density of suitable properties for first-time buyers in the study.
Paul Gibbens, Property Expert at Housebuyers4u, emphasized the importance of these findings: “Cities that combine reasonable housing prices with manageable ongoing expenses offer real opportunities for people to put down roots and build their futures. This accessibility supports not just individual financial stability but strengthens entire communities.”
The research challenges assumptions about Scottish property affordability, with both Dundee and Glasgow proving competitive despite traditionally higher demand in Scottish markets.
For first-time buyers facing economic uncertainty and rising living costs, these findings highlight viable alternatives to expensive southern markets, offering genuine pathways to homeownership in thriving UK cities.
