Birmingham house prices £354,000 cheaper than the capital, where 1 in 3 first time buyers want to move out
- More than 40% of 25-34 year olds living in London will buy their first home outside of the capital, citing the city’s cost of living as the main reason
- An additional 6% of Londoners said they would move for a better quality of life
- Birmingham more affordable for all home buyers as well as being the cheapest place to drink.
Move to Birmingham and spend £354,000 less on buying your home when compared to London prices, according to data collected by Online Mortgage Advisor.
Online Mortgage Advisor has created a city comparison tool called “Is The Grass Greener?”, which uses government data, national statistics and Zoopla listings to help users find the cost and quality of living in UK cities or London boroughs.
When compared to Lambeth – a London borough with a demographic predominantly in its 30s – Birmingham’s first time buyers were revealed to be £270,000 better off as well as saving 43p per pint.
Online Mortgage Advisor has also conducted a survey into the sentiment of the capital’s young residents, and found that one in three Londoners (41%) will buy their first home outside of the Big Smoke.
The cost of living was the main reason cited by 27% of respondents, who believe that it would be too expensive to purchase their first property in the city.
A further 6% of 25-34 year olds said they would put roots down elsewhere to give themselves and any future family a better quality of life. Another 8% of the 2,007 participants plan to move out of the capital for “other reasons”.
Discounting the 42% of residents who answered “I haven’t thought about this yet” the results were even stronger – a total of 74% said they will buy their first home outside of London for one of the above reasons.
However, one in ten people surveyed said their love for the city would keep them there, and 4% cited “other reasons” as the main factor for staying in the capital.
David Bird, a director at Online Mortgage Advisor, said:
“The stats from this survey evidence the sentiment that we’ve recognised in our own customers over the past couple of years. The number of first-time buyers coming to us with enquiries about mortgages on properties outside the capital is on the rise, and we expect to see this continue as more and more people consider themselves to be priced out of London.
“In light of these results, we’ve created a tool called “Is The Grass Greener?”,which compares every single UK city as well as London boroughs, to help first-time buyers discover where they can get the most for their money and a quality of life that suits them. We’ve analysed both government data and national statistics on a number of factors including house price, crime rate, schooling standards and even the price of a pint!”
According to recent data from Post Office Money, Birmingham has 79% of its property at an ‘affordable price’ compared to London’s 30%.
Jonathan Stephens, managing director of property investment consultancy, Surrenden Invest added:
“The findings from the survey conducted are not surprising to me. Here at Surrenden Invest we have been seeing these patterns for a while now, it seems that the general public, especially millennials, are happy to rent in London for a short time but when it comes to settling down, they are looking further afield. We have found this to be for a range of reasons but primarily financial drivers.
“The current market as it stands makes is near to impossible to buy in London if you earn under a certain income bracket, but in other cities such as Birmingham, Manchester and Liverpool this isn’t the case. Lower house prices make these cities more affordable to first time buyers and thus more attractive options. Quality of life is also becoming more important for many with trendy areas in up and coming cities such as Digbeth, the creative quarter of Birmingham, home to our latest new homes development, Moseley Gardens, growing in popularity.”