A study by Pepper Money ranked more than 300 locations across England and Wales using factors including house prices, mortgage affordability, rental costs and local earnings to determine where buyers can get the best value for money.
Middlesbrough topped the nationwide index, ahead of Burnley in Lancashire and Merthyr Tydfil in Wales.
Researchers found the town’s combination of lower-than-average house prices, affordable mortgage repayments and relatively strong earnings made it the most attractive location for aspiring homeowners.
The average first-time buyer property in Middlesbrough costs £123,831 — less than half the UK average of £261,700.
Pepper Money said local earnings compare well with house prices, making it easier for buyers to save for a deposit and keep mortgage costs manageable.
The North East emerged as the strongest-performing region overall, with the study suggesting it offers some of the best opportunities for people looking to buy rather than rent.
In total, 13 of the top 20 locations were in either the North East or North West, reinforcing the North’s reputation as one of the most affordable parts of the country for first-time buyers.
According to the research, every North East local authority except Northumberland has lower monthly mortgage costs than local rental prices.
Across the region, the average monthly mortgage payment is £699, compared with a national average of £1,310. In Middlesbrough this is estimated to be £157 per month cheaper than renting.
In Middlesbrough, County Durham and Hartlepool, mortgage payments also account for just 24% of monthly earnings – among the lowest proportions recorded in the study.
Pepper Money said the findings show that despite ongoing challenges in the housing market, there are still many parts of the UK where buying is more cost-effective than renting, with 41% of areas analysed proving cheaper to buy in than rent.
Researchers used Office for National Statistics data on earnings, property prices and rental costs, alongside mortgage affordability calculations, to compile the rankings.
