East Ayrshire has been named the most affordable location in the UK for first-time buyers, according to new research from Lloyds.

The analysis, which looks at the average price paid by people buying their first home across local areas, found that average first-time buyer prices in East Ayrshire stood at £147,353.

The area topped a list dominated by Scotland and the North of England, where first-time buyer prices remain significantly below the UK average.

Lloyds said the research pointed to locations where getting on the property ladder may be more achievable, at a time when affordability remains a significant challenge for many would-be homeowners.

Blackpool, Merthyr Tydfil and Mid and East Antrim also ranked among the most affordable locations.

In England, the most affordable local area was Blackpool, where people buying their first home paid £150,780 on average. In Wales, Merthyr Tydfil was the most affordable location, with an average first-time buyer price of £156,498.

In Northern Ireland, Mid and East Antrim was the most affordable area, with an average first home price of £175,308.

LLOYDS OPENS £5,000 DEPOSIT MORTGAGE

The findings have been published as Lloyds opens applications for its new £5,000 deposit mortgage, available on homes worth up to £300,000.

The product is aimed at first-time buyers who may otherwise struggle to raise a deposit without financial support from family.

Eligible buyers who have saved a minimum £5,000 deposit, without family support, can borrow up to £295,000 on properties worth up to £300,000, subject to a maximum of 4.5 times income.

The mortgage is available on a five-year fixed rate of 5.89%, with terms of up to 40 years. Lloyds said there were no product fees and that the deal was available to employed and self-employed applicants.

In the most affordable locations identified by the research, Lloyds said buying with the new £5,000 deposit mortgage could result in a monthly mortgage cost of less than £1,000.

Amanda Bryden, head of mortgages at Lloyds, said: “Our research shows there are still genuine pockets of value for first-time buyers, particularly for those with an open-mind who are willing to be flexible on location and property type.

“With ongoing cost of living pressures and wider economic uncertainty, it’s completely understandable that some people are feeling cautious. But there are opportunities out there, and for many buyers, that flexibility can make a real difference.

“What matters most is finding a mortgage that works for your own budget and circumstances, not just today, but over the long term. Lower deposit options, such as our new £5k deposit mortgage, could help some people get on the ladder years earlier than they might expect.

“Speaking to a mortgage expert early can help. It gives you a clearer picture of what you can comfortably afford, and the confidence to make choices that feel right for you, whatever the wider market might be doing.”

GEN Z BUYERS ENTER MARKET EARLIER IN SOME AREAS

Lloyds said the average age of a first-time buyer in the UK is now 32, two years older than a decade ago but unchanged over the past year.

However, in the 10 areas with the youngest first-time buyers, the average age falls to as low as 27, highlighting pockets of affordability that the lender said are proving attractive to Gen Z.

Mary-Lou Press, president of NAEA Propertymark, said: “While affordability challenges remain a significant hurdle for many aspiring homeowners, this research highlights that there are still parts of the UK where first-time buyers can realistically take their first step onto the property ladder.

“Local market knowledge is more important than ever, as affordability can vary dramatically between regions and even neighbouring towns. Areas across Scotland, the North of England and Wales continue to offer comparatively accessible price points, particularly for buyers willing to broaden their search criteria or consider emerging locations with strong transport links and regeneration potential.

“However, affordability is about more than headline house prices alone. Buyers must also consider mortgage repayments, energy efficiency, local employment opportunities, commuting costs and the long-term sustainability of homeownership. Low-deposit mortgage products may help unlock access for some households, but it remains vital that buyers fully understand the financial commitment involved and seek professional advice before proceeding.

“The fact that younger buyers are entering the market earlier in certain regions also reflects how local affordability and housing supply can directly influence opportunities for Gen Z. A healthy housing market relies on a sufficient mix of homes at different price points, alongside policies that support long-term supply and consumer confidence.

“Property professionals continue to play a crucial role in guiding first-time buyers through an increasingly complex market, helping consumers make informed decisions based on their personal circumstances and local market conditions.”