The historical city of Durham in the North East has been named one of the cheapest places for first-time buyers in Britain, a new analysis has revealed.

The popular County Durham location was ranked among the likes of Sunderland (average asking price of £111,263) and Hull.

But it was Aberdeen in first place, which had an average asking price for a first-time buyer type property (two bedrooms and fewer) of £102,601, according to Rightmove.

Durham crowned among UK’s cheapest places for first-time buyers

Durham’s average asking price for a first-time buyer property was found to be £125,957.

The city’s average monthly mortgage payment (per month) was £467 and the average monthly rental payment (per month) was £796, the research showed.

This means the mortgage vs rent difference in Durham totals to -£328.

In terms of a wider picture when it comes to first-time buyers applying for a mortgage, Rightmove said data from UK Finance shows that the average deposit size in Scotland and Wales is 20%, while in England it is 25%, and that more first-time buyers are choosing longer repayment terms to improve their affordability.

Despite average mortgage rates currently being slightly higher than at this time last year, there has been more stability since rates peaked in July 2023, which has helped those looking to move at the start of this year.

The average monthly mortgage payment for a typical first-time buyer type property in Britain (two bedrooms and fewer) is £53 more than this time last year, compared to £81 for renters.

For those who have been able to save up the average deposit of 20% or 25%, it is cheaper to pay a monthly mortgage than rent in each of Britain’s largest cities, as well as the capital.

The cost of renting a two-bedroom or smaller home has increased by 39% in the last five years, versus a 19% jump in the cost of buying a two-bedroom or smaller home.

Even if a first-time buyer had a smaller 15% deposit and wanted to repay their mortgage over 25 years rather than 35 years, it would still be cheaper to pay a mortgage than rent in 39 out of Britain’s 50 largest cities, outside of London.

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Rightmove’s property expert Tim Bannister commented: “These latest figures highlight why so many people remain determined to get onto the ladder, as the soaring costs of renting has meant buying has remained attractive even with higher mortgage rates.

“Longer mortgage-terms are becoming more common as a way to improve overall affordability and reduce monthly payments, though first-time buyers should be aware of what they are paying in interest compared with their actual mortgage.

“Without improvements to the supply of good quality, affordable rental homes in Great Britain, owning your own home is likely to continue to be the end-goal for those that can get their deposit together, and borrow what they need to from a mortgage lender.”