The Index revealed that Openshaw, with its current regeneration and building of a nearby hypermarket, has seen a 14 per cent growth during the past year, double the national average of 7.3 per cent. House prices for the area average £52,690, over £100,000 lower than the national average
of £183,199.
Peter O’Donovan, mortgage manager at Bestinvest, said: “With house prices at just over £52,000 in Openshaw it should be more affordable for first-time buyers. Area regeneration is a good idea with regeneration products meaning affordable housing is easier for people to obtain.”
RBS research also revealed first-time buyers consider five factors when deciding on a property, the most important being a below average ratio of house prices to local earnings. The other factors included a need for strong house price growth, urban regeneration, good transport links and a young demographic.
Ranking postcodes by desirability and the potential of a return on the initial investment, destinations in the North of the UK dominated the top ten with Middlesborough, Ardwick (Manchester), Falkirk and Leven (Scotland) all seeing a positive influx of first-time buyers over the past 12 months.
Paul Jeffrey, head of mortgage products at RBS, confirmed the industry had every reason to be optimistic that first-time buyers would return. “This Property Index and comment from the RBS Economics Unit shows there is cause for renewed optimism among buyers seeking that first step onto the property ladder.
The Index looks to highlight how smart investing can help first-time buyers skip several rungs within a few years.”
