Bath is the best city for getting onto the property ladder, new research has found.
It topped the polls in a survey by MoneySuperMarket but according to a local marketing director there are not enough homes.
Crest Nicholson sales and marketing director Marcus Evans said for these reasons - topping the polls for desirability while experiencing a slowdown in activity - Bath was a "tale of two cities".
He said: "Bath continues to top key market surveys and appeals to Londoners looking for a new or second home down country.
"By train we are just 84 minutes away from London Paddington and this continues to draw people from the capital looking for a home within commuting distance, a half-way house for visits to the West Country or as a buy to rent."
“But it is also one of the hardest hit markets outside of London," he added.
"Stock levels around the city are low.
"Good houses are still selling but sales are often protracted and buyers are nervous.”
He was speaking as the housebuilder reports it has sold two apartments at its flagship Bath Riverside development in recent weeks and has just 30 apartments left at the new Sovereign Point building overlooking the River Avon.
Analysts at Crest Nicholson found three things are helping to maintain activity in Bath’s property market.
- Investors
- Buyers using money from an inheritance
- People looking for ‘lock up and leave’ second homes
Mr Evans said: “These sales were achieved despite very difficult market conditions.
"There are many people in the market who have the money ready to buy, but the confidence is not there at the moment and this has tended to hold people back from converting interest into purchases.”
His comments come after the latest MoneySuperMarket First Time Buyer Index which ranks 35 cities for first-time buyers.
It looks at factors including:
- Job opportunities
- Average salary
- Disposable income
- Crime statistics
- Average cost of a one-bedroom property.
According to the report, Bath is the UK's best city for first-time buyers, thanks to the highest score for jobs per capita and large amounts of disposable income.
London came in last despite the good earning potential and high disposable income.
Best five cities for first time buyers
- Bath – Bath currently holds the highest score for jobs per capita (13.7 per 100) and retains its position as one of the best cities for disposable income, contributing to it moving into first place.
- Wolverhampton – Despite an increase in the average cost of a one-bedroom property over the course of the year, disposable incomes and average salaries have risen in Wolverhampton, putting it in second place.
- Chester – Chester’s rise in the rankings is thanks to a drop in the contents theft rate compared to last year, combined with affordable housing. The average cost of a one-bedroom property now sits at £106,050 – well below the national average of £131,830.
- Aberdeen – In fourth place, Aberdeen ranks 16 places ahead of its Scottish neighbour Glasgow. With a relatively low contents theft rate, higher than average disposable income, and good property prices, Aberdeen is a great option for first-time buyers who can get a one-bedroom property for an average of £93,600.
- Derby – Despite having the highest rate of contents theft amongst the top five locations, Derby’s low property prices and relatively high disposable income push it into the top five.
At the other end of the spectrum is London, which ranks lowest in the table, alongside Birmingham, Sheffield, Leicester and Edinburgh.
Arron Banks luxury Bath homes
Worst five cities for first time buyers
- London – Despite good earning potential and high disposable income, London is ranked bottom for the second year in a row. The average price for a one-bedroom property decreased from £513,084 (2018) to £486,924 (2019), which is still £355,094 above the national average.
- Birmingham – Dropping six places, the average annual salary and disposable income in Birmingham has decreased by 22%, leaving this city as the second worst for first-time buyers across the UK.
- Sheffield – The Steel City has relatively few job opportunities, with 2.54 jobs per 100 capita, significantly behind other Midlands and Yorkshire cities, such as Nottingham (5.56) and Wakefield (6.19). Affordable housing saves Sheffield from coming in last place, with it being the cheapest city to buy a house out of the bottom five. Sheffield also has one of the highest content theft rates in the country.
- Leicester – Leicester’s average annual salary has seen a significant drop, from £30,576 to £24,300 over the past year. With the cost of a one-bedroom property going up from £101,554 to £109,420, Leicester remains one of the least attractive options for first-time buyers.
- Edinburgh – With one of the highest rates of contents theft (26.4 per capita), beaten only by Oxford (30.5) and up from 17.7 last year, Edinburgh drops seven places, leaving it as one of the worst options for first-time buyers.
MoneySuperMarket consumer affairs spokeswoman Rachel Wait said: “For many, buying your first property is one of life’s great milestones and can be incredibly exciting.
“However, as is the case with any financial decision you make, it pays to think carefully about your budget and do your own research before committing to anything.
"As well as looking at house prices in your area of choice, measures such as crime rates and local job opportunities can help inform your decision and ensure you’re in the location best suited to you.
"It’s also important to start thinking about your credit score, as mortgage lenders will check your credit history to see whether you’re a reliable borrower and will use this and its affordability assessment to decide how much you can borrow.
“Despite uncertain political times, it’s refreshing to see that the first-time buyer market has continued to grow in the UK, rising 1.9% from 2017 to 2018. This is in part thanks to successful Government schemes such as Help to Buy.
"If buyers are willing to be flexible, they can stand a better chance of buying somewhere they can afford, without sacrificing a good standard of living.
"Shopping around for the best mortgage is also crucial, to make sure you’re on a plan that works for you.”
Mr Evans said: “We are confident the new facilities coming on stream, the new park environment and the great selection of apartments available will increase footfall and lead to further sales as the wider market settles down.
“We have created a fantastic Riverside community – the destination address we have been striving for since day one.
“In addition to an attractive lifestyle people are appreciating how the development flows within its riverside location and provides a key residential hub in our rapidly transforming city centre.”
For further information please call 01225 463 517 or visit www.crestnicholson.com/bathriverside. The marketing suite on Victoria Bridge Road is open daily from 10 am to 5pm.
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