No matter which part of the country you are looking to buy your first home, your search will ultimately depend on what you can afford. This comes down to the size of your deposit, how much you earn, and how high your outgoings are.
But working out the finer details isn't always straightforward.
This is where Zoopla can help you narrow down your search. Our data looks at average house prices by area to show how much you would need to earn and save for a deposit to get the keys to your own home.
If you’re looking for property for sale in Portsmouth in South East England, our map below highlights the areas that are most affordable for first-time buyers.
(Click on map for larger version)
Quick stats about Portsmouth:
The average first-time buyer property (two-to-three-bedroom house) in Portsmouth costs £251,542, with the average deposit required standing at £43,039.
The average income required from a first-time buyer household is £52,126, meaning that house prices are eight times average earnings – double lenders' typical four times earnings criteria for mortgages.
The centre of the city, PO1, which includes Old Portsmouth, Portsea, Fratton and Gunwharf Quays, is the most affordable place for first time-buyers. Average property prices stand at £187,462 and require a household income of £38,847.
Head to Southsea (PO5) if you want to be close to the common and the seafront. Here you can step on to the property ladder for £210,268, which is still well below the national average for first-time buyers of £233,777.
The least affordable area is Emsworth (PO10) to the east of Portsmouth, where you’d need to earn an average £68,198 to buy a home for £329,099.
| Postcode | Area | Average house price | Average deposit required | Average income required |
|---|---|---|---|---|
| PO1 | Portsmouth, Fratton, Old Portsmouth, Portsea, Landport | £187,462 | £32,075 | £38,847 |
| PO2 | Portsmouth, Hilsea, North End, Tipner, Stamshaw | £199,015 | £34,051 | £41,241 |
| PO12 | Gosport, Alverstoke, Hardway | £199,957 | £34,213 | £41,436 |
| PO5 | Southsea | £210,268 | £35,977 | £43,573 |
| PO13 | Lee-on-the-Solent | £212,027 | £36,278 | £43,937 |
| PO9 | Havant | £214,973 | £36,782 | £44,548 |
| PO4 | Southsea, Milton, Eastney | £231,791 | £39,659 | £48,033 |
| PO3 | Portsmouth, Hilsea, Baffins, Copnor, Anchorage Park | £234,753 | £40,166 | £48,647 |
| PO6 | Paulsgrove, Cosham, Drayton, Farlington | £256,691 | £43,920 | £53,193 |
| PO15 | Fareham, Titchfield, Whiteley | £270,797 | £46,333 | £56,116 |
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 Portsmouth 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?
One of your top priorities as a first-time buyer should be to build as big a deposit as possible. This will allow you access to better mortgage rates, as you will be borrowing a lower percentage of the overall value of the property.
Try to aim for a 10% deposit at a minimum. It is possible to put down a deposit of just 5% in some cases, but this will mean paying a higher interest rate on your loan – and result in costlier monthly repayments.
The Government offers a range of schemes designed to help you get on the housing ladder.
Help to Buy for example, is where the Government lends up to 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.
Banks and building societies will usually lend up to four times your salary, provided your credit score is in good order and your outgoings do not limit your ability to repay a mortgage. If you are buying as a couple, then combining your incomes should boost your borrowing power.
Once you know how big a deposit you have accumulated, and understand how much you might be able to borrow, you can assess how much you can afford to spend on a property. Then you can start the exciting part of the process and begin house hunting.
Make sure that you also budget for other fees that pop up along the way, such as solicitor and moving costs. There is some good news though, as stamp duty land taxis waived for first-time buyers on the first £300,000 of the purchase, providing the home is worth under £500,000.
For more help purchasing your first home, read our first-time buyers guides here.
First-time buyer affordability in South East England
Homes for first time-buyers in Portsmouth are relatively affordable when compared to the average for the wider region. Properties in South East England cost first-time buyers £339,510 on average, requiring a deposit of £58,090 and a household income of £71,524.
Despite the region being one of the least affordable in the country, there are still pockets where you can find more affordable homes.
If you jump on the hovercraft or the ferry to the Isle of Wight, a first-time buyer can bag a home in Ryde for £185,983 with an income of £38,540.
For other affordable options you can head east into Kent, where you’ll find the lowest house prices to earnings ratios in Dover, Queenborough and Chatham.
Parts of Southampton are also suited to first-time buyers, although prices are slightly higher than Portsmouth, with the average property costing £207,410 in SO14.
(Click on image for larger map)
First-time buyer affordability in the UK
If you're willing to broaden the horizons of your property search, 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 in the North.
But property prices vary even from street to street, so do your research of the so-called 'micro markets' in any given area too.
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.