The cheapest regions to buy a home
The regions of England and Wales that have the cheapest homes have been revealed. Does your area feature on the list?
According to the Land Registry’s House Price Index for October, the North East is the area with the lowest average house price, at £100,674.
This is a stark contrast to London, where the average property fetches £340,308.
While this might seem high, it is a 1.6% decrease on the average of £349,026 recorded in September.
Across England and Wales, the average house price is now £159,999, which represents a decrease of 3.2% from October 2010 and a drop of 0.9% compared with the previous month.
| Region | Monthly change (since September 2011) | Annual change (since October 2010) | Average price (October 2011) |
| East | 0.7% | -2.4% | £173,410 |
| East Midlands | 0.4% | -3.1% | £123,811 |
| Yorkshire & The Humber | 0.4% | -3.6% | £120,526 |
| South East | 0.2% | -1.4% | £206,818 |
| South West | -0.4% | -2.9% | £171,384 |
| West Midlands | -0.7% | -4.1% | £129,500 |
| England & Wales | -0.9% | -3.2% | £159,999 |
| London | -1.6% | 0.3% | £340,308 |
| North East | -1.8% | -7.2% | £100,674 |
| North West | -2.9% | -7.0% | £110,425 |
| Wales | -3.0% | -6.1% | £115,923 |
With house prices continuing to fall, those thinking about buying their first home may want to consider acting now, but what options are out there for first time buyers?
First-time buyer deals
HSBC has just launched a new mortgage deal called the Two Year Discount Fee Free Special, which requires borrowers to have a deposit of as little as 10%.
With this mortgage, borrowers get a discount off the HSBC variable rate for two years.
The interest rate is 3.84% for 24 months and there is no fee for signing up for this mortgage.
Whether you’re an existing homeowner or a first-time buyer, knowing the mortgage market inside out could help you get the best deal. Take our test to see how your mortgage knowledge measures up.
After the initial two years, the interest rate increases to 3.94%.
Other things to consider are that the monthly payments can go up and down as the HSBC Variable Rate rises and falls and an early repayment charge applies during the first two years.
Those who have a deposit of 15% or more can take advantage of the Co-Operative Bank’s lifetime tracker mortgage, which currently has an interest rate of 3.69%.
This rate is the Bank of England Base Rate plus 3.19%, so if the Base Rate increases, the interest will also rise.
First-time buyers will also need to consider that this mortgage comes with a product fee of £999.
Lifetime tracker mortgages can be appealing as it is only the Bank of England that can alter the rate, not the lender.
Other positive things about these mortgages are that they often have low early repayment charges and no fees for overpayments.
Remortgage deals
People who already own a home but are looking to remortgage may want to consider Chelsea Building Society’s two-year tracker mortgage, which has an initial rate of 2.19%.
Things to watch out for are that this rate rises to 5.79% after the first two years and there is a product fee £1,495.
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Alternatively, First Direct’s two-year tracker mortgage has an initial rate of 2.39%, increasing to 3.69% after this period.
This mortgage comes with a £499 product fee.
Other ways to reduce household costs
If you’re happy with your current mortgage, there are a number of other ways in which you can cut your household expenditure.
- Switch to a cheaper car and home insurance provider
- Reduce your debt by transferring it onto a 0% balance transfer card
- Cut your energy bills by turning off lights when you leave a room
- Work out a weekly budget and stick to it
- Think carefully before making a purchase – do you really need it?
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
Mortgages - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE. FAILING TO ADHERE TO REPAYMENT TERMS MAY RESULT IN PENALTY CHARGES AND AFFECT YOUR CREDIT HISTORY. Rates may depend on your individual circumstances
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