Manchester has become Britain’s most first-time buyer-heavy mortgage market outside London with seven in 10 mortgaged purchases now going to borrowers stepping onto the property ladder.
Latest analysis from Lloyds shows first-time buyers (FTBs) accounted for 70.2% of all mortgaged home purchases in Manchester during 2025, up from 67.2% in 2024 – the highest share of any area in Great Britain outside the capital.
Nationally, FTBs now represent around half of all mortgaged purchases, highlighting their growing importance to overall lending volumes as home mover activity remains more subdued.
REGIONAL VARIATIONS
Sandwell (69.7%), Birmingham (69.4%) and Luton (69.4%) also recorded high FTB concentrations, with Salford ranking in the top 10.
Across these markets, lower entry prices relative to London and the South East are supporting affordability metrics and improving mortgage eligibility.
In Manchester, the average first-time buyer purchase price stands at £230,090 – below the Great Britain average of £254,920 – providing more manageable loan sizes and deposit requirements for borrowers using 90% and 95% LTV products.
Smaller markets are seeing the fastest growth in first-time buyer penetration.
While major cities dominate in volume terms, smaller markets are seeing the fastest growth in first-time buyer penetration.
Worcester recorded the largest annual shift, with FTBs increasing from 40.6% of mortgaged purchases in 2024 to 58.7% in 2025 – an 18.1 percentage point rise.
Runnymede, East Hampshire, Angus and West Lancashire also posted double-digit increases in FTB share, suggesting demand is broadening geographically as buyers seek affordability and lifestyle balance.
Regionally, Manchester leads the North West, Glasgow tops Scotland at 61.2%, and Rhondda Cynon Taf leads Wales at 57.9%. Southampton is the South East’s most FTB-heavy market at 64.9%.
AFFORDABILITY CONSTRAINTS
Amanda Bryden, Head of Mortgages at Lloyds, said: “Choosing your first home is a huge moment. Affordability is the number one priority for most first-time buyers and we’re seeing more people cast their net wider to find places that match both their lifestyle and their budget.
“That flexibility can quite literally open up more doors. Manchester is a magnet for those seeking modern city-living, while increasing demand for Worcester’s more historic charm shows just how quickly new and unexpected hotspots can emerge.
“Homeownership remains one of the most effective ways to build long-term financial security. If you’re thinking about buying, speaking to a mortgage expert is a great first step.”
