The rural UK county where house buyers only need a £7k deposit for a new home

For Londoners dreaming of nabbing their first home without breaking the bank, achieving this in the capital is unfortunately unrealistic for most. For those open to relocating a bit further afield, it's worth checking out County Durham.

Halifax's latest number crunching reveals this gem in the North East as a top spot for affordable homes, where you'd only need about £7,000 for a 5 per cent mortgage deposit - significantly less than the £25k needed for a 5 per cent deposit in London.

When you weigh up the county's average earnings, which sit at £39,245, against the average price tag for a first-time buyer's home at £142,248, new homeowners would be looking at borrowing just 3.6 times their salary. That's a steal compared to the sky-high prices in London and the South East, where first-time buyers in Hammersmith and Fulham are staring down the barrel of house prices averaging £622,115 – over 10 times the average wage of £64,646.

Nationwide, the typical property value for those taking their initial step onto the property ladder is now hovering around 6.6 times the average UK income of £46,970. Amanda Bryden, Halifax's Head of Mortgages, said: "Looking ahead we expect modest house price growth in 2025, but upcoming Stamp Duty threshold reductions won't make things any easier in the short term for first-time buyers. However as last year's figures show, there are ways to make your money go further, with affordable areas in the North of the country, such as County Durham or Burnley, offering more value."

Navigating the path to buying your first home may seem like quite the expedition, but there's a whole toolkit of assistance available for eager buyers. Think specially designed mortgage options for new homeowners or taking advantage of Shared Ownership and grab that property ladder rung at a reduced price, reports the Express.

For those looking to make homeownership more than just a pipe dream, Bryden advises: "The best first step is to speak to a mortgage adviser or broker. By understanding what you need to save and what's affordable, you can turn the dream of owning a home into reality."

But brace yourselves, house-hunters in England and Northern Ireland – Zoopla's latest forecast shows that the fraction of first-timers needing to pay stamp duty will clamber from 21 per cent to a whopping 42 per cent come April.

And it’s not just the newbies feeling the squeeze; existing homeowners looking to move will see their odds of paying stamp duty soar from 49 per cent to 83 per cent.

Stamp duty rules are changing in April, shrinking the "nil rate" band for first-timers from £425,000 down to £300,000. Other homebuyers are also getting trimmed back, with their threshold going from £250,000 to £125,000. It's estimated that the stamp duty changes could funnel an additional £1.1 billion into government coffers each year.

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