New research by Halifax has outlined Britain’s hottest locations for first-time buyers, where those stepping onto the property ladder are reshaping the local housing market.
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.
Halifax said that 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 area | Region | Percentage of FTBs among all buyers (2023) |
Average FTB price (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 | |
City of Manchester
Manchester saw first-time buyers account for 75% of all home purchases made with a mortgage last year, up from 65% (+10pp) in 2020.
Halifax said 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, it added. The average first-time buyer property price is £212,891, which is around £35,000 below the British average.
Slough
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.
The average property price in the town for first-time buyers is £322,961, around £75,000 above the British average, but still well below the average of nearby London (£490,235).
Sandwell
Sandwell in the West Midlands saw first-time buyers making up 73% of all properties purchased with a mortgage last year, compared to 71% in 2020 (+2pp).
Properties in Sandwell are significantly cheaper than the British average at £179,058 and also around £40,000 below the average for the West Midlands (£221,307).
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.”
