Manchester has been named Britain’s capital for first-time buyers after topping the list of locations most popular among those getting onto the property ladder.
Analysis of house price data by Halifax found that a combination of affordable house prices, diverse properties and a strong job market made it a hotspot for first-time buyers.
According to Halifax starters will account for around half (49%) of all homes bought with a mortgage in Britain by 2023.
But in Manchester this figure rises to 75%. And it’s no wonder, as the average house price for first-time buyers in the city is £212,891, compared to an average of £247,862 in Britain, excluding London.
For those further south, the Berkshire town of Slough – better known as a location for the TV series The Office than for real estate – came in second on Halifax’s hotspot list.
The proportion of first-time buyers 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, Halifax said. In 2020, first-time buyers represented 54% of all properties purchased. It has good rail links to London and has benefited from renovation projects in recent years, which – together with its affordability – will have increased its appeal to potential buyers.
Third on the list was Sandwell in the West Midlands, where 73% of buyers are first time buyers and the average property price for this category of buyers is £179,058.
With real estate prices well below the national and regional average, according to Halifax, the location is already attractive. But add in the combination of good transport links, regeneration and 1,200 hectares of parks and green spaces and it deserves the rave reviews from its first buyer.
Amanda Bryden, head of Halifax Mortgages, said: “Deciding when and where to buy your first home is a deeply personal choice. While save for a down payment And dealing with higher interest rates poses a significant challenge for many potential homeowners, life often intervenes and major milestones such as starting a new job or starting a family can influence the decision.
“First-time buyers are often more willing to move to new areas in search of the ideal home within their financial reach. This flexibility opens up a wider range of possibilities and can lead to more affordable housing options.
“Buying your own home remains one of the best financial decisions you can make in the long term, and several locations across the UK stand out for their appeal to first-time buyers. Manchester in particular, with its diverse property styles and vibrant cultural scene, has become a magnet for those taking their first steps into home ownership.”
Hotspots for new buyers
(Source: Halifax)
| Local government area | Region | Percentage of FTBs among all buyers1 (2023) | Average FTB price2 (2023) |
| City of Manchester | North West | 75% | £212,891 |
| Slough | Southeast | 73% | £322,961 |
| Sandwell | West Midlands | 73% | £179,058 |
| Leicester/Oadby | East Midlands | 72% | £218,900 |
| Reading | Southeast | 72% | £302,616 |
| Thurrock | East of England | 72% | £286,391 |
| Dartford | Southeast | 71% | £314,090 |
| Knowsley | North West | 71% | £157,139 |
| Wolverhampton | West Midlands | 70% | £172,554 |
| Luton | Eastern England | 70% | £245,207 |
| Average Britain (excluding London) | 49% | £247,862 | |