We bought a flat in 2000 for about £48,000. It was just at the right time as the property market exploded soon afterwards. We sold it a year later and made about £15,000 on it. We would have no chance now of starting up as that same flat is worth more than 3 times as much. Must be hard to find the money to get anything decent.
I would be tempted to live in the rougher parts just to get a start. Once you have a mortgage and are paying it, banks are more likely to lend you more, enabling you to make a move to somewhere a bit better.
Or move to the North. It's grim but it's cheaper (just). :P