First-time buyers are continuing to struggle getting on the property ladder in the UK. House prices are on the way up, while council tax and stamp duty are also making it tough for people to find a place where they can afford to live.
The cost of living varies hugely in cities across the UK. New research from Capital Allowance Review Service has revealed the cost of buying homes in different locations across the nation. The study looked at how council tax, stamp duty and other property costs compare against local house prices to determine where money goes furthest.
Chris Roberts, Managing Director at Capital Allowance Review Service, said: "Property taxes can make or break a buyer's budget, and the differences between cities are often surprising. Our study provides buyers with the data they need to understand the true cost of homeownership beyond just the purchase price."
Cities such as Newcastle, Cardiff, Birmingham and Leeds feature in the top 10 of the list. Meanwhile, Edinburgh ranks third and Manchester comes second.
According to the research, Manchester benefits from zero stamp duty on its average £234,000 properties. The cost of council tax is currently £1,783.78 per year while house price growth has been more modest at 2.2%.
Although Edinburgh has one of the higher average house prices at £279,300, this is offset by the lowest council tax in the top 5 at £1,563.51 per year. The city also has a house price growth of just 1.8%.
Belfast came at the top of the list, partly due to the complete absence of stamp duty on properties. Buyers in the Northern Irish city pay nothing in stamp duty on the average £192,00 home.
Belfast also has a fairly modest council tax of £1,843.77 per year. Roberts said the city "offers an almost unique situation in the UK property market."
He added: "The lack of stamp duty alone can save buyers thousands compared to other cities, and when you factor in reasonable council tax rates, it's a compelling proposition for anyone looking to maximise their purchasing power."
On the research, Roberts explained: "While property taxes vary widely across the UK, certain cities clearly stand out as offering far more favourable conditions for buyers. What we're seeing is a tale of two markets: cities like Belfast and Manchester where buyers can avoid stamp duty entirely, versus others where these costs can add thousands to your purchase.
"The data shows that smart buyers need to look beyond just house prices and consider the full tax picture. A seemingly cheaper property in one city might actually cost more over time when you factor in council tax and stamp duty.
"For anyone serious about getting on the property ladder, understanding these differences is not only helpful, but absolutely vital for making the right financial decision."
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