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Britain’s first buyer’s hotspot outside London has been revealed.
The data is compiled as part of an analysis of mortgage credit data by major banks.
Halifax looked at mortgage approval data to calculate the findings, looking at areas of England, excluding London, where first-time buyers account for the largest proportion of home sales.
It is estimated that in Manchester, first-time buyers accounted for three-quarters (75%) of home purchases with a mortgage last year, up from just two-thirds (65%) in 2020.
See the full list below.
With music, art and culture, vibrant shopping centers and thriving suburbs, Manchester has many attractions for those looking to move to the city. Halifax says the combination of relatively affordable housing, a strong job market, transport links and ongoing urban regeneration make it an attractive location for first-time buyers.
The average first-time buyer property price is £212,891, which is around £35,000 below the average across Britain (excluding London), according to Halifax.
The city has a wide range of property types to choose from, including modern apartments in regeneration areas and traditional terraced houses in suburban neighbourhoods, to suit different tastes and budgets, says Halifax.
He added that the city is experiencing significant economic growth and business investment, especially in sectors such as technology, finance and media, opening up new job opportunities.
Slough in Berkshire is second on Halifax’s list. Halifax said Slough had become an increasingly popular location for first-time buyers, who represented 73% of all properties bought with a mortgage last year, up from 54% in 2020, according to bank estimates.
The average property price in the city for first-time buyers is £322,961.
While this is around £75,000 above the average in Britain, it is lower than the average price in London (£490,235).
Hotspot
This is Britain’s first-time buyer hotspot, with an estimated percentage of first-time buyers among all buyers taking out a mortgage in 2023, followed by average first-time buyer house prices 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, East of 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, East of England, 70%, £245,207
Britain average (excluding London), 49%, £247,862
With good rail links to London, including via the Elizabeth line, Slough is an attractive option for professionals looking to travel, and for large families after somewhere outside the capital, Halifax said.
It added that the region is also fast becoming a hub for large data centers.
Sandwell in the West Midlands was placed third, with first-time buyers making up around 73% of properties bought with a mortgage last year, up from 71% in 2020.
A property in Sandwell is cheaper than the average at £179,058 and also around £40,000 below the average for the West Midlands (£221,307), Halifax said.
As well as being useful for commuters, Sandwell is another area that has seen significant economic regeneration and business investment over the past few years, the report said. Halifax said Sandwell’s green space was also proving popular with young families.
In Wales, Cardiff was identified by Halifax as the top first-time buyer hotspot, with first-time buyers making up an estimated 59% of mortgaged property purchases last year, with the average home fetching £225,797.
In Scotland, Glasgow took the top spot, with first-time buyers making up approximately 63% of mortgaged property purchases, paying £165,194 on average in 2023.
Amanda Bryden, head of Halifax Mortgages, said: “Deciding when and where to buy your first home is a personal choice. While saving for a deposit and navigating higher interest rates present significant challenges for many prospective homeowners, life often intervenes and major milestones such as starting a new job or starting a family can sway the decision.
“First-time buyers are often more willing to move to new areas in search of a suitable home within their financial reach. This flexibility opens up a range of possibilities and can lead to more affordable housing options.
Lloyds Banking Group, which is part of Halifax, recently announced a “first-time buyer boost”, allowing eligible first-time buyers to borrow up to 5.5 times their annual household income, up from 4.49 times.
Halifax’s calculations exclude cash buyers. London was also excluded when looking for Britain’s biggest buyer hotspots because of different market dynamics, particularly higher property prices compared to other places in Britain, the bank said.
