Hottest property spots for first-time buyers in Britain revealed

Manchester has been named the country’s most popular location for first-time buyers outside of London, as many struggle to get on the housing ladder amid rising house prices and higher mortgages.

In Manchester, first-time buyers accounted for three-quarters (75%) of home purchases with a mortgage last year, up from just under two-thirds (65%) in 2020, according to Halifax. At a national level, first-time buyers account for around half (49%) of all homes bought with a mortgage.

The average first-time buyer property price in Manchester is £212,891, which is around £35,000 below the average across Britain — excluding London.

Halifax said that a combination of relatively affordable housing, a strong jobs market, transport links and ongoing urban regeneration make it an attractive location for many first-time buyers.

Slough came in second in the property hot spot list, as the area has become an increasingly popular location for first-time buyers, who represented 73% of all properties purchased with a mortgage last year. This was up from 54% in 2020, according to the lender’s estimates.

The average property price in the town for first-time buyers is £322,961.

While this is around £75,000 above the average across the UK, it is well below the average price tag in nearby London, which stands at £490,235.

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With good rail connections into London, including via the Elizabeth line, Slough is an attractive option for professionals looking to commute, and for growing families after more space outside of the capital, Halifax said.

Sandwell in the West Midlands was the third most popular location, with first-time buyers making up around 73% of properties purchased with a mortgage last year.

Properties in Sandwell are significantly cheaper than average at £179,058 and also around £40,000 below the £221,307 average for the West Midlands.

Sandwell has undergone significant economic regeneration and business investment over recent years, the report said. Halifax added Sandwell’s green spaces also make it popular with young families.

Amanda Bryden, head of Halifax Mortgages, said: “Deciding when and where to buy your first home is a deeply personal choice. While saving for a deposit and navigating higher interest rates pose a significant challenge for many prospective homeowners, life often intervenes and major milestones such as starting a new job or beginning a family can sway the decision.

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“First-time buyers are often more willing to relocate to new areas in pursuit of finding the ideal home within their financial reach. This flexibility opens up a broader range of possibilities and can lead to more affordable housing options.”

In Wales, Cardiff was identified by Halifax as the top first-time buyer hotspot, with first-time buyers accounting for around 59% of mortgaged property purchases last year, snapping up a home for £225,797 on average.

In Scotland, Glasgow took the top spot, with first-time buyers making up an estimated 63% of mortgaged property purchases, paying £165,194 typically in 2023.

Lloyds Banking Group, which owns Halifax, recently announced its “first-time buyer boost”, allowing eligible first-time buyers to borrow up to five-and-a-half times their household annual income, up from a multiple of 4.49 times.

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NAEA Propertymark president Toby Leek said: “It is positive to see such an uplift on the number of first-time buyers having the confidence and ability to approach the housing market. Getting a foothold on the housing ladder is a massive undertaking and has been even more so considering all the economic turbulence of the last few years.

"With parliament now back in session, it’s vital the UK government share their timetable on tackling current issues and especially concerning what future support may be offered to those who aspire to buy."

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