While some parts of the UK are still ‘no-go areas' for first time buyers - despite the stamp duty amnesty - others are set to become havens for those seeking affordable housing. The net result will be a population shake up with the potential to change the face of Britain as unexpected areas of the country start to attract, and retain, young talent:
* Spoilt for choice: North East boasts the highest proportion of properties for sale under £175,000 in the UK (78%).
* Bonny Scotland: another strong contender for cash strapped first time buyers - 68% of all properties for sale are under £175,000.
* Not a chance: London is a ‘no-go area' for first time buyers - just over one in ten properties (13%) sell for less than £175,000.
* Forget it: only 1% of properties in Hammersmith and Fulham are under £175,000.
The stamp duty break on properties under £175,000 could shake up the population and inject new life into areas such as the North East of England, according to new research from property and local information website, UpMyStreet.com. Although around 50% of properties sold recently across England and Wales cost less than £175,000, there are huge regional differences. In London, only 13% - one in ten properties - come in under £175,000, while the North East is emerging as the region to head to for a property bargain - 78% of properties there avoid stamp duty.
However, affordable housing alone is not enough to encourage first time buyers to flock to new areas - they still need to be able to work. The good news is that many wouldn't need to give up their ideal career to move to a more affordable region. A survey by the CBI found that almost half of all employers (46%) are now offering home or teleworking to staff - up from 14% in 2006 and 11% in 2004. First time buyers are not restricted to working for large businesses either. Last month O2 revealed that home working is becoming more and more popular among small businesses with over half (50%) not working in formal offices. In fact, almost a quarter - 24% - work remotely or from home.
First time buyers are also getting older, which means that their careers could be advanced enough for employers to allow the flexibility to work from home. The average age of a first time buyer is now 32, although this could be as high as 38 for graduates, who have to overcome student debt before being able to afford a home.
The net result is that some parts of the country look set to attract and retain young talent, while other parts - such as overpriced London - look set to lose out. London is traditionally an area young professionals flock to in order to further their careers. But it is also home to the country's least first-time buyer friendly local authority - only 1% of all the properties in Hammersmith and Fulham in west London are sold for under £175,000. The capital is rapidly becoming a no-go area for first time buyers, with only 13% of properties sold in London in July under £175,000.
In contrast, areas of the country now offering first time buyers a realistic chance of owning a home include the North East, which boasts the highest number of properties in the UK for sale under £175,000 (78%), and Scotland where 68% of homes are sold for under £175,000. Other attractive areas for first time buyers include the North West (72%), Yorkshire and the Humber (72%) and Wales (71%).
First time buyers looking for somewhere specific to live in the North East should head to Chester-le-Street in County Durham, where 94% of properties avoid stamp duty - saving cash strapped buyers up to £1,750 in additional home buying costs - and giving them a good choice of affordable housing.
However, while affordable housing levels coupled with the option to work from home could lead to people migrating to radically different areas of the country, buyers must be sure to research those areas before moving. Looking at crime rates, local facilities and information on schools will allow movers to make a decision that won't just meet their immediate need to buy a home, but one that they can also live with well into the future.
Annabel McQueen, Housing Market Analyst at UpMyStreet, says: "Our research shows that some parts of the country are now a complete ‘no-go' for first time buyers. The stamp duty amnesty will not be enough to reverse this trend. But, with home and remote working opportunities increasing, plus the older age of most first time buyers, there will be many more young professionals ready, willing and able to move to new areas where they can enjoy a far greater choice of affordable homes for under £175,000.
"The shake-up that could follow could see regeneration and growth opportunities in areas such as the North East. These areas will begin to compete to attract and retain young professionals, who will in turn breathe life into the local economy. The key to making it a success is for first time buyers to choose an area with lots of affordable homes, but to also do their homework and make sure it will meet their future needs too."
