Reading is among the least affordable places in England for first-time buyers, it has been revealed.

New figures compiled by online mortgage broker Mojo Mortgages has found that the city is among the most expensive places for new homeowners to begin their climb up the property ladder.

The first homes scheme affordability index looked at various factors affecting home affordability in June 2021 including house prices, average annual salary and monthly take home pay to work out where in England was most and least affordable.

Based on the average monthly mortgage payment as a percentage of income, Reading was the fourth least affordable location in England for first-time buyers - with the average monthly mortgage repayment taking up 38.98 per cent of a couple’s take-home pay.

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This is based on an average property price in the town of £451,122 and an average annual salary of £33,363.

Oxford was the least affordable location for first-time buyers, with Bath (47.65 per cent) and London (47.12 per cent) making up the top three.

The figures have been released following the launch of the government’s first homes scheme this month designed to help first-time buyers and key workers onto the property ladder in their local areas that might otherwise have had to move to another city to afford their first home.

Nisha Vaidya, mortgage expert at money.co.uk said: "While of course it’s important to remember the 30 per cent plus discount will apply throughout the lifetime of the property and will apply when you eventually sell for the first time, a First Homes scheme property is still very much worth considering regardless of location as an option for first-time buyers looking to get onto the property ladder.

“The savings available - particularly allowing first-time buyers access to higher LTV mortgages through reduced deposits - could also mean better access to lower interest rates and improved overall savings across the lifetime of a mortgage.

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"Plus of course, purchasing a home is a significant long term investment towards your financial future as opposed to lining a landlord’s pocket.

“We’re excited to see how this new scheme develops over the coming months as new properties and developments continue to crop up across England.”

The ten least affordable areas in England based on mortgage as a percentage of income were as follows:

  1. Oxford (49.37%)
  2. Bath (47.65%)
  3. London (47.12%)
  4. Reading (38.98%)
  5. Poole (38.72%)
  6. Cambridge (38.49%)
  7. Brighton (37.19%)
  8. Slough (36.68%)
  9. Cheltenham (36.38%)
  10. Exeter (35.03%)