The most popular areas for first-time buyers
Looking for a neighbourhood where you can afford to buy your first home? New analysis from the Office for National Statistics (ONS) could help you narrow down your search.
The ONS has dug into a decade of data from the Financial Conduct Authority to identify the local authorities with the highest rate of first-time buyer mortgages.
It's the first time this information has been published at a local authority level and highlights the shifting trends in where first-time buyers choose to settle down.
Here, Which? reveals the top six areas first-time buyers are moving to, plus the typical cost of a property there based on Land Registry data.
6. Milton Keynes (South East)
In a drive to build more homes, Milton Keynes was designated as a New Town in 1967.
Now a city, Milton Keynes has excellent rail links to the capital, taking just 30 minutes to travel to London - the fastest train journey to Birmingham takes 45 minutes. It also benefits from good road links, with the M1 motorway close by.
- First-time buyer property price: ?277,000
- Semi-detached house: ?333,00
- Terraced house: ?271,000
- Flat/maisonette: ?172,000
5. Swindon (South West)
Swindon is well located for travel to a range of major UK destinations.
It's particularly convenient for commuters travelling to Bath or Bristol, with train journeys taking just over 20 minutes to Bath and a little over 30 minutes to Bristol.
The area's excellent rail connections also make it possible to reach London in just under 50 minutes. Additionally, the town benefits from good road connections, thanks to its proximity to the M4 motorway.
It's also located close to the picturesque Cotswolds, offering easy access to scenic countryside.
- First-time buyer property price: ?234,000
- Semi-detached house: ?289,000
- Terraced house: ?230,000
- Flat/maisonette: ?157,000
4. Rushmoor (South East)
Rushmoor is a local authority in Hampshire that includes the towns of Farnborough and Aldershot. Both are excellent commuter towns, offering train journeys into London in just over 30 minutes.
Its average house prices for first-time buyers sit around the middle of the top six.
- First-time buyer property price: ?276,000
- Semi-detached house: ?383,000
- Terraced house: ?314,000
- Flat/maisonette: ?197,000
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3. Nuneaton and Bedworth (West Midlands)
At number three is the cheapest local authority in the list.
The area offers excellent travel links by car, with Leicester reachable in 50 minutes, Birmingham in 40 minutes, and Coventry just 25 minutes away.
Its proximity to major motorways, including the M42, M6, and M1, also makes it a great base for longer journeys.
For those travelling by rail, you can reach Birmingham directly in just under 30 minutes.
- First-time buyer property price: ?206,000
- Semi-detached house: ?227,000
- Terraced house: ?180,000
- Flat/maisonette: ?113,000
2. Harlow (South East England)
A town just north of the M25 motorway and Epping Forest ranks as the second most popular spot for first-time buyers. It's another ideal location for commuters, with the fastest trains to London Liverpool Street taking just 30 minutes.
- First-time buyer property price: ?290,000
- Semi-detached house: ?432,000
- Terraced house: ?315,000
- Flat/maisonette: ?194,000
1. Dartford (South East England)
Topping the list is Dartford, a town south-east of London. With the fastest trains to central London taking just 37 minutes, it's a great choice for commuters working in the capital.
However, the proximity to London comes at a price - it is on average the most expensive area for first-time buyers to make the list.
- First-time buyer property price: ?312,000
- Semi-detached house: ?430,000
- Terraced house: ?346,000
- Flat/maisonette: ?223,000
Have first-time buyer trends changed?
The ONS analysed first-time buyer data from 2013 to 2023 to examine whether first-time buyer trends have changed over the decade.
Unsurprisingly, it found a sharp decline in first-time buyer activity across many London boroughs. In Tower Hamlets, the proportion of first-time buyer mortgages fell by more than 40% during this period.
In 2013, the top three areas for first-time buyers were London boroughs - Wandsworth, Tower Hamlets, and Lambeth. By 2023, the highest-ranking London borough for first-time buyers was Wandsworth, which had dropped to seventh place.
The change is easy to understand when looking at house price growth.
In Tower Hamlets, the average price paid by a first-time buyer rose from ?309,000 in 2013 to ?496,000 in 2023.
- Find out more: what's happening to house prices?[3]
How to find the best place to live
There's a lot to consider when picking a place to live.
From how bad the rush-hour traffic gets to how safe a neighbourhood is, you will want to make sure where you go matches your needs and lifestyle.
Use our guide on finding the best place to live[4] for the things to look into when doing your research.
Of course, where you end up will also largely depend on your budget.
You can check roughly how much you can borrow[5] based on your salary with our calculator, but to find out how much you can realistically afford to borrow, you will need to keep an eye on mortgage rates.
In January, the top fixed-rate mortgages for first-time buyers increased, following a trend seen across the wider mortgage market.
The good news is that throughout February and March, top fixed-rate deals have stabilised and gradually declined.
Currently, the best fixed-rate mortgages range from just above 4% to slightly over 5%, depending on your loan-to-value (LTV)[6] ratio.
- Find out more: best mortgage rates[7]
References
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- ^ what's happening to house prices? (www.which.co.uk)
- ^ finding the best place to live (www.which.co.uk)
- ^ how much you can borrow (www.which.co.uk)
- ^ loan-to-value (LTV) (www.which.co.uk)
- ^ best mortgage rates (www.which.co.uk)