If you’re planning to put down roots in the historic but compact city of Lancaster, take a look at our data to help you bag a bargain.

Taking your first step on the property ladder in Lancaster? Here at Zoopla, we have data that you might find useful.

It looks at average house prices across the UK by post code and then estimates how much a first-timer would need to earn and have as a deposit to buy there.

We've summarised this information in to the map below. It shows what income you would need to buy a two- to three-bedroom property in various post code areas in Lancaster – in short the greener, the better.

Map showing first-time buyer affordability in Lancaster

(Click on map for larger version)

Quick stats about Lancaster

  • The average first time buyer property (a two- to three-bedroom house) in Lancaster costs £156,355 with the average deposit required standing at £20,576 and the average income required from a first time buyer household of £33,945.
  • The most affordable area can be found to the west of the town across the River Lune in LA3, which contains Heysham, Middleton, Overton, Sunderland Point and parts of Morecambe. Here, the average first time buyer property costs £135,058, requiring a deposit of £17,774 and a household income of £29,321.
  • Lancaster’s most expensive postcode is LA2, which is a vast area covering that includes Bailrigg (the campus of Lancaster University), Hornby, Clapham and Bentham. Here first time buyers would need to earn an average of £41,954 to buy a home for £193,248.

Top postcode areas in Lancaster ranked by affordability

Postcode

 

Area

 

Average house price

 

Average deposit required

 

Average household income required

LA3

Morecambe, Heysham, Middleton, Overton, Sunderland Point

£135,058

£17,774

£29,321

LA1

Lancaster, Aldcliffe, Bailrigg

£135,234

£17,797

£29,359

LA4

Morecambe, Torrisholme

£135,783

£17,869

£29,478

LA5

Carnforth, Arnside, Silverdale, Warton, Bolton-Le-Sands

£182,452

£24,011

£39,610

LA2

Lancaster, Abbeystead, Austwick, Bailrigg, Bay Horse, Caton, Clapham, Cockerham, Galgate, Glasson Dock, Halton, Bentham, Hornby, Quernmore

£193,248

£25,431

£41,954

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 Lancaster.

We've then taken the average mortgage advance from lenders in the region and worked out the average deposit and salary required for the loan (based on four times' salary).

How can I afford a home as a first time buyer?

Building as big a deposit as possible is the first step. This allows you to borrow a lower percentage of the value of the property and access better mortgage rates.

Aim for a minimum 10% deposit. It is possible to put down less in some cases, but this means a less favourable mortgage rate and higher monthly repayments.

If you are struggling to raise a deposit, check out Help to Buy where the Government will lend you up to 20% of the purchase price interest-free for the first five years.

Provided your credit score is in good order and your monthly outgoings do not limit your ability to repay a mortgage, banks and building societies will lend up to around four times your salary.

If you are buying as a couple, then combining your incomes will mean you can borrow more. 

Don’t forget that, when buying a home, there will be other fees 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.

For more help purchasing your first home, read our first time buyers guides.

First time buyer affordability in the UK 

If you're prepared to cast your search further afield still, then our first time buyer affordability map of the UK (below) might help you find more affordable alternatives.

But remember that, while the UK map might prove a helpful overview, in practice, UK property markets operate on a hyper-local level.

This means that researching cities down to even a street-by-street level will give you the best chance of getting the best value property. 

Map showing affordable housing in the UK for first-time buyers

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.

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