Analysis of house price data by Halifax showed a mixture of affordable house prices, diverse properties and a strong jobs market made it a hotspot for first-time buyers.
According to Halifax, first-time buyers account for around half (49%) of all homes purchased with a mortgage in 2023 across Britain.
But in Manchester this figure soars to 75%. And it’s no wonder, with the average first-time buyer house price in the city at £212,891 compared to the Great Britain, excluding London, average of £247,862.
For those located further south, the town of Slough in Berkshire – more well known for being the location for the TV series The Office than for property – came second on Halifax’s hotspot list.
The proportion of buyers purchasing for the first time here is 73% and the average property price for those taking their first step on the ladder is £322,961.
It has grown in popularity over the years, said Halifax. Indeed, in 2020 first-time buyers represented 54% of all properties purchased. It has good rail links to London and has benefited from regeneration projects in recent years, which – along with affordability – will have boosted its attraction to would-be buyers.
Third on the list was Sandwell in the West Midlands where 73% of buyers are first timers and the average property price for this category of purchaser is £179,058.
With property prices, according to Halifax, well below the national and regional average, the location is already attractive. But add the combination of good transport links, regeneration and 1,200 hectares of parks and green spaces and it well and truly earns its first-time buyer plaudits.
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.”
First-time buyer hotspots
(Source: Halifax)
| 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 | |
