Manchester is now the country’s most popular location for first-time buyers outside of London, new research shows.
At a national level, first-time buyers account for around half – 49% – of all homes bought with a mortgage, although in the most popular areas for first-time buyers, that figure jumps to as high as 75%.
New research, based on data from the Halifax House Price Index, analysed the areas of the country (outside of London) where first-time buyers account for the biggest proportion of home sales.
Despite a housing market characterised in recent years by high property prices and more expensive borrowing costs, these first-time buyer hotspots are proving resilient, with a number of factors driving their popularity, the study found.
| Local authority area | Region | Percentage of FTBs among All Buyers1 (2023) | Average FTB price2 (2023) |
| City of Manchester | North West | 75% | £212,891 |
| Slough | South East | 73% | £322,961 |
| Sandwell | West Midlands | 73% | £179,058 |
| Leicester / Oadby | East Midlands | 72% | £218,900 |
| Reading | South East | 72% | £302,616 |
| Thurrock | Eastern England | 72% | £286,391 |
| Dartford | South East | 71% | £314,090 |
| Knowsley | North West | 71% | £157,139 |
| Wolverhampton | West Midlands | 70% | £172,554 |
| Luton | Eastern England | 70% | £245,207 |
| Great Britain average (excluding London) | 49% | £247,862 | |
Leading the list, Manchester saw first-time buyers account for 75% of all home purchases made with a mortgage last year, up from 65% (+10pp) in 2020.
The city is well-known for its young and vibrant population. A combination of more affordable housing, a strong jobs market, excellent transport links, rich cultural scene, and ongoing urban regeneration make it an attractive location for many first-time buyers.
Compared to many other cities, Manchester offers more affordable property prices. The average first-time buyer property price is £212,891, which is around £35,000 below the British average.
Second on the list is Slough in Berkshire, which has become an increasingly popular location for first-time buyers, who represented 73% of all properties purchased with a mortgage last year, up from 54% in 2020 (+19pp).
The average property price in the town for first-time buyers is £322,961, around £75,000 above the British average, but still well below the average of nearby London (£490,235).
Next up is Sandwell in the West Midlands, where first-time buyers also made up 73% of all properties purchased with a mortgage last year, compared to 71% in 2020 (+2pp).
Properties in Sandwell are significantly cheaper than the British average at £179,058 and also around £40,000 below the average for the West Midlands (£221,307).
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.
“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.
“Buying your own home remains one of the best long-term financial decisions you can make, and across the UK several locations stand out for their appeal to first-time buyers. Notably, Manchester, with its diverse property styles and vibrant cultural scene, has become a magnet for those taking their first steps into homeownership.”
Commenting on the report, Toby Leek, NAEA Propertymark President, 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.
“Across the UK, there is a significant mismatch between housing supply and actual demand, and this factor can contribute towards higher prices in certain areas. It would be welcome news for first time buyers to see the UK government’s ambition of near two million new properties across the next five years spring into life to help ease current pressures.”
