Lozells is the cheapest place to buy a home in Birmingham

Lozells is the cheapest part of Birmingham to buy a home, with a typical property costing £168,000, according to new figures.

That is about £100,000 less than the average house price across the UK.

The five cheapest areas

• Lozells: £168,000
• Winson Green: £170,000
• Aston: £173,500
• Nechells: £176,000
• Bordesley Green: £185,000

Most of the cheapest areas are in the north and west of the inner city, close to the city centre, which could make them attractive to people who work there.

Why prices are lower

The cheapest areas tend to be among the more deprived parts of the city, with higher crime rates, and Lozells also has the highest crime rate in Birmingham. Homes there are often older and smaller, much of the housing stock is Victorian terraces, and some streets need investment. All of these things hold prices down.

But lower prices can also mean bargains for buyers willing to do their research. Areas close to the city centre with good transport links have often been the first to see prices rise when demand grows.

How Birmingham compares

Birmingham has long been cheaper than many other big cities, especially London and the south east, which has drawn people and businesses to move here. But prices vary enormously across the city. In areas such as Sutton Coldfield, Harborne and Moseley, typical prices are far higher than in the cheapest wards.

For first-time buyers, the gap between incomes and house prices is still a big obstacle, even in the cheaper areas. Buyers usually need a deposit of at least 5% to 10%, and mortgage lenders typically lend around four and a half times income.

Help for first-time buyers

The government has announced a new scheme, Your First Home, intended to help more people get on the housing ladder, and housebuilders say it could lift the number of homes they build. Details of how it will work are still emerging.

Do your homework

Anyone thinking of buying in a cheaper area is advised to visit at different times of day, look at local crime figures and school ratings, check flood risk, and get a full survey, especially on an older property. It is also worth looking at any planned regeneration, such as new transport links, which can change an area quickly.

Lozells, a few miles north west of the city centre, is known for its busy shopping streets and its diverse community, and much of the area was built in the late 19th century as Birmingham expanded.