When it comes to taking your first step on the property ladder, location is usually a priority, but can often involve compromise. So where should you look for affordable homes if your first-choice area is financially out of reach?
This is where Zoopla can help. Our data looks at average house prices to show how much a first-time buyer needs to earn and save for a deposit to buy a home in the UK.
If you’re looking for the best places to live in Cambridge or Cambridgeshire, our map, below, shows you the areas that are most affordable for first-time buyers.
(Click on map for larger version)
Quick stats about Cambridge:
The average first-time buyer property (two-to-three-bedroom house) in Cambridge costs £374,082, with the average deposit required being £59,479.
The average drops when the surrounding areas are also taken into account, with first-time buyers typically needing a £52,962 deposit to buy a £333,097 home.
Average income required from a first-time buyer household in Cambridge is £79,604, while including the surrounding areas, this dips to £70,570.
Cambridge regularly makes the list as one of the least affordable cities to buy a home in the country, the average loan to income ratio stands at 10.22 in the city and 9.72 if the surrounding postcodes are included. Lenders will normally let you borrow up to four times your income.
The most affordable place to buy in the wider Cambridge area is Haverhill (CB9), where the average first-time buyer house price stands at £222,101. To buy there, you would typically need a deposit of £35,314 and require an income of £46,697. The market town of Haverhill dates back to Saxon times and sits roughly 20 miles from the centre of Cambridge.
For first-time buyers keen to be closer to Cambridge city centre itself, try CB23, which contains villages such as Madingley, Hardwick and Comberton. To step on the property ladder in this area will typically cost £290,360. It's handy for transport links with the M11, A428 and A14 all conveniently close at hand.
The least affordable options can be found in CB3 (north-west Cambridge and Griton) which contains many of the city’s prestigious university colleges. Here the average price of a home will set you back £461,955 and require a household income of £100,750.
Between 2011 and 2021, the population of Cambridge increased by the most of anywhere in the East of England. Its old-world charm, vibrant city centre and unmistakable sense of opportunity make it a highly desirable place to live.
Discover more about living in Cambridge.
| Postcode | Area | Average house price | Average deposit required | Average household income required |
|---|---|---|---|---|
| CB23 | Cambourne Comberton, Bourn, Haslingfield, Hardwick, Madingley, Papworth Everard, Bar Hill | £290,360 | £46,167 | £61,048 |
| CB24 | Histon, Oakington, Longstanton, Willingham, Swavesey, Over, Milton | £319,656 | £50,825 | £67,208 |
| CB21 | Fulbourn, Great and Little Wilbraham, West Wratting, Abington Bartlow, Horseheath, Castle Camps, Linton | £342,241 | £54,416 | £71,956 |
| CB22 | Babraham, Sawston, Duxford, Whittlesford, Great and Little Shelford, Harston, Foxton | £345,197 | £54,886 | £72,578 |
| CB5 | East Cambridge | £358,598 | £57,017 | £75,395 |
| CB4 | North Cambridge | £382,595 | £60,833 | £80,750 |
| CB1 | Central Cambridge, Teversham | £424,442 | £67,486 | £91,250 |
| CB2 | West Cambridge | £441,690 | £70,229 | £95,500 |
| CB3 | North-west Cambridge, Girton | £461,955 | £73,451 | £100,750 |
| Postcode | Area | Average house price | Average deposit required | Average household income required |
|---|---|---|---|---|
| CB9 | Haverhill (Barnardiston, Great Wratting, Kedington, Steeple Bumpstead, Withersfield) | £222,101 | £35,314 | £46,697 |
| CB7 | Ely (Chippenham, Fordham, Isleham, Prickwillow, Queen Adelaide, Soham, Upware, Wicken) | £238,664 | £37,948 | £50,179 |
| CB8 | Newmarket ( Exning, Snailwell, Moulton, Kentford, Gazeley, Cheveley, Upend, Kirtling, Cowlinge, Denston, Dullingham, Six Mile Bottom) | £246,799 | £39,241 | £51,889 |
| CB6 | Ely (Little Downham, Littleport, Witchford) | £252,274 | £40,112 | £53,041 |
| CB23 | Cambourne Comberton, Bourn, Haslingfield, Hardwick, Madingley, Papworth Everard, Bar Hill | £290,360 | £46,167 | £61,048 |
| CB25 | Burwell, Swaffham Prior, Bottisham, Lode, Waterbeach, Chittering | £307,682 | £48,921 | £64,690 |
| CB24 | Histon, Oakington, Longstanton, Willingham, Swavesey, Over, Milton | £319,656 | £50,825 | £67,208 |
| CB11 | Saffron Walden (Arkesden, Clavering, Debden, Elmdon, Littlebury, Newport, Rickling Green, Wendens Ambo, Widdington) | £338,073 | £53,754 | £71,080 |
| CB21 | Fulbourn, Great and Little Wilbraham, West Wratting, Abington Bartlow, Horseheath, Castle Camps, Linton | £342,241 | £54,416 | £71,956 |
| CB22 | Babraham, Sawston, Duxford, Whittlesford, Great and Little Shelford, Harston, Foxton | £345,197 | £54,886 | £72,578 |
How have we calculated it?
We've looked at the average price of two-to-three-bedroom homes - the most common type of property purchase for first-time buyers in all Cambridge postcodes.
We've then taken the average mortgage advance from lenders in the region and worked out both the average deposit required and the amount that needs to be earned based on buyers being able to borrow up to four times their salary.
How can I afford a home as a first-time buyer?
Your first step will be to build up as big a deposit as possible. This allows you to borrow a lower percentage of the overall value of the property and means you can gain a better mortgage rate.
Try to save at least a 10% deposit. While it is possible to put down less in some cases, the compromise is either higher monthly repayments or a longer-term mortgage.
The Government's dedicated Help to Buy schemes are there to help you become a homeowner. For certain property, you can also use the Equity Loan scheme, where the Government will lend you 20% of the purchase price interest-free for the first five years. However, you will only be able to use it on a new-build home valued up to £600,000.
Provided your credit score is in good order and your outgoings to do not limit your ability to repay a mortgage, banks and building societies will lend up to an average of four times your salary. If you are buying as a couple, then combining your incomes could have an impact.
Once you’ve established how big your deposit is and how much you might be able to borrow, you’ll have a good idea of your budget. Then you can start the exciting part of the process and begin house hunting.
Don’t forget that there will be other fees that pop up along the way, such as solicitor and moving costs. The good news is that stamp duty land tax is waived for first-time buyers on the first £300,000 of the purchase.
For more help purchasing your first home, read our first-time buyers guides here.
First-time buyer affordability in East England
Homes for first time-buyers in the East cost £294,600 on average, requiring a deposit of £46,841 and a household income of £62,777 – noticeably less than central Cambridge’s averages, but still far pricier than the average for the country (£233,777).
But despite the region being markedly less affordable than most of the country, there are pockets where you can find less expensive homes.
Peterborough to the north west of Cambridge is well suited to first-time buyers, with house prices standing at £152,000 (PE3, PE1) on average – although this still requires a household income of around £32,000.
On the coastline, Great Yarmouth (NR30) and Lowestoft (NR32) are other possibilities, with homes costing £132,199 and £150,962 respectively. The Fenland market town of Wisbech and historic King’s Lynn are also worth investigating.
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First-time buyer affordability in the UK
If you're prepared to cast your search further afield, then our first-time buyer affordability map of the UK, will help. There are still plenty of areas where those with household earnings of under £30,000 can afford property, especially if you head to the Midlands or North.
While the UK-wide map might provide a helpful overview, it's also worth noting that the property market varies on a far more local level and you really need to take a closer look at specific locations, like we've done with Cambridge, above to seek out value.
Full methodology: House prices taken from a subset of Zoopla-partner Hometrack's stock valuation database (one-to-two beds for London and two-to-three bedrooms for rest of UK). Median price calculated as of June 2018. Median advance taken by region (c75% for London, c85% outside of London) from UK Finance. Term of Mortgage: 25 years. Interest rate: 2.00%. Loan to income ratio: 4.0. Earnings required for affordability is greater of those required to satisfy loan-to-income threshold or income required to service the mortgage.