Lloyds Banking Group research highlights Scotland and northern England as the UK’s most affordable regions for first-time buyers

Lloyds Banking Group research highlights Scotland and northern England as the UK’s most affordable regions for first-time buyers

(IN BRIEF) Lloyds has published new research identifying East Ayrshire as the most affordable location in the UK for first-time buyers, with an average first-time buyer property price of £147,353. The findings show that Scotland and the North of England dominate the most affordable areas, with Inverclyde, Blackpool, Kingston upon Hull, Na h-Eileanan Siar, Hyndburn, Clackmannanshire, Merthyr Tydfil, South Tyneside and West Dunbartonshire also ranking highly. The research was released alongside the launch of Lloyds’ new £5,000 deposit mortgage, available on homes worth up to £300,000, which aims to help eligible buyers enter the market without financial support from family. Lloyds also highlighted that the average UK first-time buyer is now 32, although some areas, including Ribble Valley, South Staffordshire and Pendle, are seeing buyers get on the ladder at a younger age.

(PRESS RELEASE) LONDON, 18-May-2026 — /EuropaWire/ — New research from Lloyds Banking Group has identified East Ayrshire as the most affordable location in the United Kingdom for first-time buyers, with average property prices for those entering the housing market standing at £147,353. The findings come as the bank launches a new mortgage product requiring a minimum deposit of just £5,000, designed to help more buyers access home ownership without financial assistance from family members.

According to the research, Scotland and northern England dominate the list of the country’s most affordable first-time buyer destinations. Alongside East Ayrshire, areas such as Inverclyde, Blackpool, Kingston upon Hull, Merthyr Tydfil and South Tyneside ranked among the most accessible markets for new buyers. In many of these locations, monthly mortgage repayments using Lloyds’ new low-deposit product could remain below £1,000 per month.

The bank said its new mortgage offering allows eligible applicants with a £5,000 deposit to borrow up to £295,000 on homes valued at up to £300,000, subject to income limits of 4.5 times salary. The mortgage is currently available with a five-year fixed rate of 5.89% and repayment terms of up to 40 years. The lender noted that the product is open to both employed and self-employed applicants and does not include product fees.

For full details visit: www.lloydsbank.com/mortgages/first-time-buyers/5k-deposit-mortgage

Amanda Bryden, Head of Mortgages at Lloyds, said the research demonstrates that “genuine pockets of value” still exist across the UK housing market for buyers willing to remain flexible about location and property type. She added that lower-deposit lending products may help some prospective homeowners enter the market years earlier than expected amid ongoing cost-of-living pressures and wider economic uncertainty.

The study also examined where younger buyers are entering the property market most quickly. While the average age of a UK first-time buyer is now 32, some local areas report significantly younger buyers. Ribble Valley recorded the youngest average first-time buyer age at 27, followed by areas including South Staffordshire, Pendle and Cannock Chase. Lloyds said these areas are proving particularly attractive to members of Generation Z seeking earlier access to home ownership.

The research also highlighted the most affordable first-time buyer locations in each UK region. Mid and East Antrim topped the rankings for Northern Ireland, while Merthyr Tydfil led in Wales and Blackpool was named the most affordable area in England.

Notes

The information contained in this release is intended for the sole use of journalists and media professionals. Any mortgage figures or calculations included are illustrative examples only and are not intended to constitute financial advice or provide an indication of customer outcomes. Mortgage customers or applicants should refer to the Lloyds website for full details, including terms and conditions, eligibility criteria, and how to obtain regulated advice.

You could lose your home if you don’t keep up your mortgage repayments.

References:

1) The first -time buyer mortgage scenarios referenced are illustrative examples of the monthly repayment amount only. They do not include additional costs such as legal fees or stamp duty, nor other ongoing costs associated with homeownership. Mortgage calculations are based on a five -year fixed -rate mortgage at 5.89% with a £5,000 deposit and a 30 -year repayment term. Actual borrowing amounts, interest rates, and monthly repayments will depend on individual circumstances, including credit history, income, and affordability assessments. The interest rate quoted of 5.89% is available to eligible applicants on 18th May 2026 and remains subject to change thereafter.

Source: https://www.lloydsbank.com/mortgages/first -time -buyers/5k -deposit -mortgage.html

Methodology:

This research is based on Lloyds Banking Group’s own housing statistics database, drawing on mortgage approval data from customers of Lloyds Bank, Halifax and Bank of Scotland.

Prices are simple arithmetic (or “crude”) averages, calculated over the 12 months to February 2026 inclusive. They are not mix -adjusted and may therefore can be affected by changes in the sample over time.

At local authority level, smaller numbers of transactions can lead to greater volatility in average prices. In some cases, neighbouring local authorities have been combined to ensure a robust sample size.

The information in this release is intended for the sole use of journalists and media professionals. It has been prepared from information that we believe is collated with care, but it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual’s own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. © Lloyds Bank plc all rights reserved 2026.

Amanda’s top tips for first-time buyers

Lloyds mortgage expert Amanda Bryden has built a career in the industry that spans almost 30 years. She started as a mortgage broker and has since filled a variety of senior roles across several of the country’s biggest lenders.

Here’s what she suggests:

• Do your research – Get familiar with the homebuying process. From an Agreement in Principle to mortgage approval and completion. The Lloyds First-Time Hub includes free guides, and access to expert-led online sessions, to help explain the jargon and make things clearer.
• Get advice – Speak to a mortgage professional early on, don’t wait until you think you’ve saved enough or found you dream home. They can help explain what you can afford, typical costs and what to expect along the way. Lloyds offers video appointments at times that suit you.
• Explore your options – It’s important to know what support is available. A mortgage expert will show you options you might not have considered and guide you on ways to build up the funds quicker. Schemes like Shared Ownership and low-deposit mortgages can make buying more affordable than you might think.

Media Contact:

Gregor Low
gregor.low @lloydsbanking.com
07500 078 879

SOURCE: Lloyds Banking