A blue square with white textDescription automatically generatedSouthwark Ranks Position 6 for Accessibility to the Property Ladder Compared to Renting

By analysing the upfront and ongoing cost of renting versus buying, researchers at Bird & Co developed an Affordability Index to identify which local authorities in England and Wales offer first-time buyers the best opportunities to step onto the property ladder.

Researchers gathered data from the ONS, Statista, GOV.uk, Home Owners Alliance, and UKMC on rental prices, salaries, house prices, loan-to-value percentages, interest rates, mortgage repayment periods, and initial home-buying costs (deposit percentages, Stamp Duty fees, conveyancing fees and house survey costs).

From this, affordability was quantified using two key metrics:

The Rental Affordability Score (RAS): the ratio of rent to salary, where higher values indicate lower affordability.
The Home Purchase Affordability Score (HPAS): considers upfront buying costs and mortgage payments relative to salary.

To compare renting and buying across locations, the Affordability Index was calculated by dividing HPAS by RAS. In doing so, the firm was able to conclude that renting is the more affordable option in every local authority studied. It also identified the ten locations in England and Wales where first-time buyers have the best chances of breaking into the housing market, which were:

Newcastle upon Tyne
City of Bristol
Portsmouth
Manchester
Leeds
Southwark
Southampton
Burnley
Lincoln
Bournemouth, Christchurch and Poole

Notably, the Affordability Index revealed that Southwark ranks number 6 among all Local Authorities in England and Wales. Now, let’s take a closer look at the specifics:

Here, the average house price for first-time buyers is £424,335, with a loan-to-value ratio of £297,034, based on the expected deposit percentage of 30%.
Furthermore, with an average salary of £3,549 per month, the chances of getting a foot on the property ladder in this area are higher compared to other locations.

Bird & Co’s research also suggests that high rental prices in Southwark may make buying a home a more practical and achievable option for first-time buyers. For instance, although the upfront cost of buying is £131,280, monthly mortgage repayments average £1,552, which is significantly lower than the typical rent of £2,238.

Daniel Chard has said, “Surprisingly, some of the country’s major cities – Newcastle, Bristol, Manchester and Leeds – rank within the top five on this list, highlighting that even in larger urban centres, there are still opportunities for first-time buyers to take that first step into homeownership.

“What’s particularly surprising is Bristol taking the second spot as one of the most accessible cities for first-time buyers, especially given the South of England’s reputation for higher property prices. Yet, the research highlights that Bristol manages to combine better housing accessibility with a thriving job market, opening up more opportunities for first-time buyers.
“Furthermore, cities like Burnley and Lincoln, where property prices are more affordable, give first-time buyers a better shot at purchasing a home.

“Salary also plays a key role, as seen in Southwark, where the strong average income helps make homeownership more accessible.

“Other areas, like Bournemouth, remain affordable despite rising demand, with mortgage repayments staying well below those in London and the South East.

“Additionally, government schemes such as the Lifetime ISA, which provides a 25% savings bonus on deposits up to £4,000 per year, have likely supported buyers in these regions. Since property prices in all top ten local authorities fall within the scheme’s £450,000 limit, first-time buyers in these areas can take advantage of this additional financial support.

“This research highlights the financial challenges facing first-time buyers and provides valuable insights into the most affordable areas to step onto the property ladder.”

Planning to buy a property in 2025? Bird & Co is here to assist; whether you’re looking to purchase, sell, or remortgage your home, reach out to Southwark conveyancing solicitors at [email protected] or call 01476 372044 to get started.
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