Revealed – hottest locations for Britain’s first time buyers

New research by Halifax has revealed Britain’s hottest locations for first-time buyers. The 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.

Local authority areaRegionPercentage of FTBs among All Buyers1 (2023)Average FTB price2 (2023)City of ManchesterNorth West75%GBP212,891SloughSouth East73%GBP322,961SandwellWest Midlands73%GBP179,058Leicester / OadbyEast Midlands72%GBP218,900ReadingSouth East72%GBP302,616ThurrockEastern England72%GBP286,391DartfordSouth East71%GBP314,090KnowsleyNorth West71%GBP157,139WolverhamptonWest Midlands70%GBP172,554LutonEastern England70%GBP245,207Great Britain average (excluding London)49%GBP247,862

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.

• Affordability: Compared to many other cities, Manchester offers more affordable property prices. The average first-time buyer property price is GBP212,891, which is around GBP35,000 below the British average.

• Diverse housing stock: The city provides a range of property types, from modern apartments in regenerated areas to traditional terraced houses in suburban neighbourhoods, catering to different tastes and budgets.

• Economic growth: Manchester has experienced significant economic growth and business investment, particularly in sectors like technology, finance, and media, opening up new job opportunities.

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).

Over recent years there’s been significant investment in regeneration projects in the town, including new residential, retail and leisure developments.

• Affordability: The average property price in the town for first-time buyers is GBP322,961, around GBP75,000 above the British average, but still well below the average of nearby London (GBP490,235).

• Transport: With excellent rail connections into London, including via the Elizabeth line, and located just 10 miles from Heathrow, it’s an attractive option for professionals looking to commute, and for growing families after more space outside of the capital.

• Tech: There is also a strong employment market in the town itself. Forming part of what is sometimes dubbed the ‘UK’s Silicon Valley’ along the M4 corridor, it’s fast becoming a hub for large data centres, bringing hi-tech jobs to the area.

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).

• Affordability: Properties in Sandwell are significantly cheaper than the British average at GBP179,058 and also around GBP40,000 below the average for the West Midlands (GBP221,307).

• Location: This part of the Black Country is well-connected by major road networks, including the M5 and M6 motorways, and with good train links to Birmingham and Wolverhampton, it’s an ideal location for commuters.

• Amenities: Sandwell is another area that has undergone significant economic regeneration and business investment over recent years. The borough also boasts 1,200 hectares of parks and green spaces, making it particularly popular with young families.

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Amanda Bryden, Head of Halifax Mortgages, says: “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.”

Halifax and Lloyds Bank recently announced First-time Buyer Boost with an improved loan-to-income multiple for all eligible first-time buyers.

This allows them to borrow up to 5.5 times their household annual income, up from 4.49 times.

Based on a household income of GBP50,000 and a deposit of 10%, this will increase the maximum loan available from around GBP224,500 to cGBP275,000 (a 22% increase).