Yorkshire in top three most affordable places to buy a first home

Average house prices are now 3.2 per cent below their peak in August last year.

Nationwide has also quantified how long it takes the average first-time buyer earning a typical wage to save for a 20 per cent deposit on a home, assuming they set aside 15 per cent of their take-home pay each month.

Yorkshire fares better than most UK regions, although the average time now sits at just over six and a half years.

Only Scotland and the North East report a lower average saving period of just under six years. In London, the UK’s most expensive area to buy into, it is now just over 15 years.

Over at Zoopla, the latest market report reveals that house prices in Yorkshire rose by 7.4 per cent over the last 12 months, which is higher than the UK average of 6.5 per cent but includes the period before energy bills boomed and the cost of living crisis escalated.

Buyer demand in the UK is now down 23 per cent compared to the five-year average, which was boosted by the pandemic boom in moving.

There has also been a marked change in home hunting with Zoopla reporting a greater demand for apartments. It believes this is due to buyers being impacted by higher mortgage rates and more people moving back to cities, which were abandoned by some during the height of the pandemic.

The difference in price between flats and houses is stark in many areas. Outside London, the average two-bedroom flat listed for sale on Zoopla is £196,000 and is almost £100,000 cheaper than an average three-bed home. One-bedroom flats are £150,000 cheaper.

Over a quarter of new buyers are now looking for flats, up five per cent on last year and in Yorkshire, the areas attracting the highest interest in apartment buying include Huddersfield, where demand has risen by 13.1 per cent, and Wakefield where it has increased by 7.2 per cent.

The average price for flats in Wakefield is £92,500 and in Huddersfield it is £104,700. Huddersfield has good rail and road links to both Leeds and Manchester, along with a large student population, which has attracted buy-to-let investors.

Wakefield is attracting those who work in Leeds, which is a short drive away, depending on weight of traffic, or a 20 minute train ride from Wakefield Westgate to Leeds central.

Wil Law, a social media executive for John Lewis, bought a one-bedroom apartment in central Wakefield and has no regrets. Value was a main driver as the average price for an apartment in central Wakefield is £111,750 compared with £178,610 in Leeds city centre.

Wil says: “There is more of a younger community in the centre of Wakefield now compared with a few years ago. There are also quite a few cool places where young people want to go, including some great coffee shops and there is a vibrant arts scene too.”

However, he warns: “The areas in the centre vary from street to street so it’s important to choose the right spot.”

The Tileyard development looks set to boost Wakefield’s appeal even more. It is set in a Grade II listed mill complex neighbouring The Hepworth gallery and a multi-million pound restoration of the buildings will, say the developers, be home to the UK’s largest creative community outside of London.

When finished, the site is set to include studios and workshops, education space, a hotel, events space and restaurant, cafe and bar facilities.

For those who want to buy a flat in Wakefield, Claire Kendall, MD of Richard Kendall estate agents, says competition for them is not overwhelming and adds that with some landlords looking to sell off their apartment portfolios due to changing tax conditions, there will be even more choice.

She adds: “Wakefield provides an attractive marketplace for those working in the commutable cities and it’s not just work that drives this, we have families from far-off parts of the country deciding to locate here due to the transport links.”

Going forward, Zoopla say that the start to 2023 will be more of a slow burn but predicts that demand will pick up if mortgage rates remain as they are.

There is also more choice. Tthe average estate agent has 23 properties for sale, up from a low of 14 in 2022.