Affordable Areas to Buy a Home in the UK: Where to Find Value in 2024

The latest news from Halifax’s house price index reveals that North-east England remains the most affordable region in the UK to buy a home, with the average property costing £172,538. As interest rates continue to rise and the cost of living crisis persists, many prospective buyers are considering relocating to more affordable areas.

According to Halifax, Northern Ireland is the second most affordable region, with the average property priced at £192,502, followed by Scotland at £204,579. In contrast, London and south-east England remain the most expensive regions, with average prices of £539,336 and £384,972 respectively.

Despite the increase in property prices, estate agent Savills predicts a 2.5% rise in prices this year, attributing it to the growing confidence in stable and falling mortgage rates. Halifax’s head of mortgages, Amanda Bryden, noted that homebuyers are adjusting their expectations and targeting smaller properties to cope with higher borrowing costs.

With analysts predicting fewer interest rate cuts this year due to inflation concerns, lenders have begun increasing mortgage costs. However, Halifax expects property prices to continue growing throughout 2024, with Bryden expressing confidence in the resilience of the housing market in the face of higher interest rates.

Overall, the housing market seems to be finding its footing in the current economic climate, with buyers showing more confidence and adjusting their strategies to navigate the challenges of rising costs. As the year progresses, Halifax anticipates modest growth in property prices, buoyed by potential future cuts in bank rates and the overall stability of the market.