Wherever in the country you are looking, buying your first home comes down to what you can afford. And this is based on the size of your deposit, how much you earn, and how high your outgoings are.
But working out the finer details isn't always as 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 become a bona fide property owner.
This guide is all about Sheffield, in south Yorkshire.
The map below highlights the areas that are most affordable for first-time buyers.
(Click on map for larger version)
Quick stats about Sheffield:
The average first-time buyer property (two-to-three-bedroom house) in Sheffield costs £150,973 according to Zoopla data, with the average deposit required being £19,778.
The average income required from a first-time buyer household is £32,799.
Grimesthorpe and Pitsmoor (S4) to the north of the city centre are the most affordable places to buy, with an average property price of £75,364 and a required household income of £16,486. The area easily meets banks and buildings societies usual four times earnings criteria for lending, as you can get on the property ladder for 2.72 times local earnings.
The average income required for first-time buyers in all of the top 10 most affordable areas in Sheffield is below £24,000 – almost half the £49,549 average for the whole of the UK.
Hope Valley in S32 is Sheffield’s least affordable area, with an income of £62,286 required for a first-time buyer and average house prices standing at £292,284. This area comes at a premium as the entire postcode sits within the highly desirable Peak District National Park.
| Postcode | Area | Average house price | Average deposit required | Average household income required |
|---|---|---|---|---|
| S4 | Grimesthorpe, Pitsmoor | £75,364 | £9,421 | £16,486 |
| S14 | Gleadless Valley | £85,307 | £10,663 | £18,661 |
| S5 | Firth Park, Fir Vale, Longley, Shirecliffe, Shiregreen, Southey Green, Parson Cross | £87,733 | £10,967 | £19,192 |
| S65 | Herringthorpe, Hooton Roberts, Ravenfield, Thrybergh, East Dene | £89,885 | £11,236 | £19,662 |
| S80 | Creswell, Thorpe Salvin, South Worksop, Whitwell | £94,492 | £13,947 | £20,136 |
| S9 | Attercliffe, Brightside, Darnall, Meadowhall, Tinsley, Wincobank | £99,937 | £12,492 | £21,861 |
| S62 | Rawmarsh, Wentworth, Parkgate | £101,334 | £12,667 | £22,167 |
| S61 | Greasbrough, Kimberworth, Rockingham, Thorpe Hesley, Munsborough, Scholes, Ferham | £103,059 | £12,882 | £22,544 |
| S2 | Arbourthorne, Heeley, Highfield, Manor, Norfolk Park, Wybourn, Park Hill | £107,218 | £13,402 | £23,454 |
| S43 | Brimington, Barlborough, Clowne, Inkersall Green, Staveley | £123,884 | £18,285 | £26,400 |
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 Sheffield 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 means paying a higher interest rate on your loan - and therefore 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 you 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.
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 four times your salary. If you are buying as a couple, then combining your incomes will boost your affordability.
By getting to grips with how much you can borrow and what you can put towards your deposit, you should then be able to assess what you can afford to spend on a home. Then your property search can get underway.
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 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 Yorkshire & Humberside
Homes for first time-buyers in Sheffield are broadly in-line with the price of the wider region. Properties in Yorkshire & Humberside cost first-time buyers £150,631 on average, requiring a deposit of £18,829 and a household income of £32,951.
You can find other affordable options if you head east to Doncaster, where you can buy a home in DN1 for just £68,441. If you want to be by the coast, Grimsby is also well suited to first time buyers, with DN31 and DN32 containing homes that require a household income of less than £16,000.
Bradford to the north of Sheffield also holds appeal, with properties in BD3 and BD1 available for three times close to three times local earnings ratios.
(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.
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 Sheffield, 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.