Hottest Spots for First-Time Home Buyers in UK revealed

Discover the top locations for first-time home buyers in UK, revealed by Halifax's mortgage approval data. Find your ideal home today!

In a recent analysis of mortgage approval data, Halifax has unveiled intriguing insights into the landscape of first-time home buyers in UK, excluding the capital, London. The study reveals that first-time buyers constitute a significant proportion of home sales, with Manchester emerging as the preeminent hotspot outside of London. This vibrant city accounted for an impressive 75% of mortgage-backed home purchases last year, a notable increase from 65% in 2020. 

Halifax attributes Manchester's allure to a confluence of factors: relatively affordable housing, a robust job market, efficient transport links, and ongoing urban regeneration efforts. The average property price for first-time buyers in Manchester stands at £212,891, which is approximately £35,000 below the national average for Britain, excluding London. The city offers a diverse array of property types, ranging from contemporary apartments in revitalized areas to traditional terraced houses in suburban locales, catering to a variety of preferences and financial capabilities.

In Scotland, Glasgow has claimed the top position, with first-time buyers comprising an estimated 63% of mortgaged property transactions, typically purchasing homes for around £165,194 in 2023. Meanwhile, Cardiff has emerged as the leading hotspot in Wales, where first-time buyers accounted for approximately 59% of mortgaged purchases, with an average home price of £225,797.

Slough, located in Berkshire, has also garnered attention, ranking second on Halifax's overall list. The town has witnessed a surge in popularity among first-time buyers, who represented 73% of all mortgage transactions last year, a significant rise from 54% in 2020. The average property price for first-time buyers in Slough is £322,961, which, while approximately £75,000 above the national average, remains considerably lower than the staggering average price in London, which stands at £490,235. Slough's excellent rail connections to London, including the newly established Elizabeth line, make it an attractive option for professionals seeking a commute, as well as for families desiring more space outside the bustling capital.

Sandwell in the West Midlands secured the third position, with first-time buyers making up around 73% of mortgage purchases last year, a slight increase from 71% in 2020. Properties in Sandwell are notably more affordable, with an average price of £179,058, which is approximately £40,000 below the West Midlands average of £221,307. The area has also undergone significant economic regeneration, making it appealing to young families, thanks to its ample green spaces.

In a bid to further support first-time home buyers in UK, Lloyds Banking Group, of which Halifax is a part, recently announced a "first-time buyer boost," allowing eligible individuals to borrow up to 5.5 times their annual household income, an increase from the previous limit of 4.49 times. It is important to note that Halifax's calculations excluded cash buyers and London, given the distinct market dynamics and significantly higher property prices in the capital.

Here are the top first-time buyer hotspots in Britain, along with the estimated percentage of first-time buyers among all mortgaged buyers in 2023, followed by the average first-time buyer house price last year, according to Halifax:

1. Manchester, North West, 75%, £212,891  

2. Slough, South East, 73%, £322,961  

3. Sandwell, West Midlands, 73%, £179,058  

4. Leicester/Oadby, East Midlands, 72%, £218,900  

5. Reading, South East, 72%, £302,616  

6. Thurrock, Eastern England, 72%, £286,391  

7. Dartford, South East, 71%, £314,090  

8. Knowsley, North West, 71%, £157,139  

9. Wolverhampton, West Midlands, 70%, £172,554  

10. Luton, Eastern England, 70%, £245,207  

The average across Britain (excluding London) stands at 49%, with an average property price of £247,862.