Revealed: The most and least expensive market towns for first-time buyers

Buyers in search of their perfect first home dream of a quaint cottage in a picturesque market town – but soaring price tags in these sought-after locations often push that ambition out of reach.

However, there are hotspots around the country where first-time buyers can snap up one of these desirable locations for less than £200,000, half the price of the most expensive spot. 

They just need to head to the Midlands and the north-east for the bargains, new research from Lloyds Banking Group reveals.

Here, This is Money reveals the least and most expensive market towns for first-time buyers – and those seeking out their forever home.

Leek takes lead for young buyers

First-time buyers hunting for a home in a market town must now hand over some £280,582 for the privilege, which has shot up 2 per cent in the last year but some 26 per cent since 2020.

It’s a hefty ask for buyers to build such a sizeable deposit and to meet affordability criteria for this chunky price tag.

First place: The picturesque market town of Leek, Staffordshire, is the top spot for first-time buyers with homes for just £191,359

But first-time buyers can secure a home in picturesque Leek, Staffordshire, for just £191,359.

The former textile town is set amid swathes of green space and is close to the Peak District – perfect for buyer with an adventurous side.

Buyers can enjoy a cobbled market square along with traditional butchers, bakeries and greengrocers.

Chesterfield in the East Midlands is the second cheapest market town for young buyers as homes here sell for just £198,054, Lloyds says.

In fact, six of the top ten least expensive market towns for first-time buyers are in the Midlands. Chesterfield is home to the famous crooked spire on its church and a large open-air market.

First homes in Northallerton, in Yorkshire and the Humber, are snapped up for £201,628, Lloyds says.

Next is Selby (£202,092), Driffield (£203,260) and Boston (£211,404).

Market towns are good option for first-time buyers, says Mary-Lou Press, president of estate agent body Propertymark, as they can get more for their money than is busier areas.

‘Plus, they’ll be part of a flourishing community within proximity to busier cities for work and social commitments,’ she says.

‘With the average deposit on a home increasing to over £60,000, many buyers, especially those stepping onto the property ladder for the first time, will be casting their nets wider in order to purchase a home that meets their expectations, but for a more affordable price compared to those located in busier cities.’

After Boston, it is Buxton in the East Midlands that’s the most affordable with a price tag of £224,896 then Newport in Wales with a £227,784 price point.

Sleaford and Grantham finish up the list as first-time buyers here spend just £229,197 and £230,464, respectively, on their properties.

However, a first home in some market towns is more than double the price of those in Leek. Hitchin is the most expensive market town for first-time buyers as the average price tag is £410,366.

The area has lots to offer for young buyers – with a plethora of shops, restaurants and cafés – but is out of budget for many.

Altrincham in Greater Manchester is also an expensive pick at £404,864 while homes in West Malling, Kent, sell for £396,925.

First-time buyers hoping to secure a property in Saffron Walden must hand over £363,960.

Picturesque: Chesterfield, where homes sell for just £198,054, is home to the famous crooked spire on its church and a large open-air market

Hotspots: The Midlands and the north-east offer the best bargains with homes in Selby, North Yorkshire, (pictured) selling for as little as £202,092

Yorkshire seaside spots are cheapest across country 

House hunters looking to secure a property in a market town now need to stump up a huge £363,456, some £67,000 more than the average house price, LLoyds data reveals.

Price tags for these houses have soared by 5 per cent in the last year – 2.5 percentage points more than overall house price growth.

In fact, in the last five years home prices in these locations have surged by some 24 per cent.

For all buyers, it’s Immingham in Yorkshire and the Humber that is the most affordable, with an average house price of £176,918.

It has a large port and views of the Humber Estuary – and is well connected with major motorways nearby.

Saltburn-by-the-Sea in the northeast is also affordable as average homes have a £186,222 price tag, which typically buys a two-bedroom, one-bathroom apartment or maisonette.

Buyers can enjoy the beach and funicular railway on the cliff, as well as farmer’s market with local produce.

Taking the bronze spot is Crook, also…