Head north, first-time buyers advised

Last updated at 12:37 05 September 2005


First-time buyers looking for the best return on their investment are being advised to head north to purchase a home and get onto the property ladder, new research says.

The Royal Bank of Scotland (RBS) said three of the top five property hotspots for first-time buyers were in the north of England, while one was in Scotland and one was in Wales.

The group looked at a range of factors to find the best places for first-time buyers to get on to the property ladder, taking into account factors which would affect future house price growth, as well as an area's current desirability.

It found that Openshaw on the outskirts of Manchester was the top property hot spot for the coming year.

It claimed the area was on the verge of an urban renewal, but currently had some of the lowest property prices in its index at an average of £52,690, well below the national average of £183,199.

At the same time it has benefited from a recent regeneration scheme and the building of a new hypermarket, helping house prices to rise by 14 per cent during the past 12 months, double the national average of 7.3 per cent.

RBS is also tipping Middlesbrough in Teesside, Ardwick in Manchester, Falkirk in Scotland and Ferndale in the Rhondda Valley, south Wales.

The other places to make it into the top 10 were

Kingston-upon-Hull, Blaenrhondda in south Wales, Stratford in London, north central Stoke-on-Trent and Leven in Scotland.

The group said buying a home in an up and coming area would enable first-time buyers to benefit from above-average house price growth and climb up the property ladder faster.

It said first-time buyers looking for an area that would be a good investment should look for places with a house price to incomes ratio that was below the national average, above average house price inflation during the past 12 months and Government-funded regeneration schemes.

Factors which make an area desirable to live in included good transport links and a young population, particularly because people who are retired tend to compete for the same smaller properties first-time buyers want.

Paul Jeffrey, head of mortgage products for The Royal Bank of Scotland, said: "The index looks to highlight how smart investing now can help first-time buyers skip a few rungs within a few years."

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