A new study has identified where first-time buyers paid the highest prices for their first home in 2025, highlighting the continued affordability pressures across much of the UK.
The research, carried out by Mortgage Lane, analysed prices paid by first-time buyers across 70 major cities and large urban areas. Rather than looking at overall house price averages, the study focused specifically on what new buyers are paying to get on the ladder, avoiding distortion from high-value properties or long-held homes.
Data was sourced from the Office for National Statistics alongside current local property listings, with equal weighting applied to both datasets. According to Mortgage Lane, this approach provides a more accurate reflection of current market conditions for first-time buyers.
Westminster emerged as the most expensive location in the UK for first-time buyers in 2025, with an average purchase price of £850,027. The figure places the central London borough significantly ahead of all other areas included in the study and well beyond the reach of most new buyers without substantial financial support.
London as a whole ranked second, with the average first-time buyer paying £728,555. Although lower than Westminster, the figure underlines the extent to which the capital continues to command a premium, even for entry-level homes.
Archway placed third, with first-time buyers paying an average of £657,500. Once considered a more affordable part of north London, the area has seen sustained demand in recent years, pushing prices steadily higher.
Islington followed in fourth place, where the average first-time buyer home cost £618,108. The borough’s popularity, driven by its transport links, proximity to the City and West End, and mix of period and modern housing, continues to support strong demand.
Cambridge was the most expensive location outside London, ranking fifth with an average first-time buyer price of £404,438. The city’s status as a global centre for education, research and technology continues to attract professionals and investors, adding pressure to a limited housing supply.
Oxford ranked sixth, with first-time buyers paying an average of £387,602. As with Cambridge, academic prestige, strong employment opportunities and constrained development contribute to consistently high prices.
Brighton took seventh place at £379,013, reflecting the city’s appeal to buyers seeking a coastal lifestyle alongside good transport connections and urban amenities.
Sutton ranked eighth, with an average first-time buyer price of £351,924. Despite being part of Greater London, the borough has historically been seen as more affordable than many inner London areas.
Bexley followed in ninth place at £348,733, while Croydon completed the top ten, with first-time buyers paying an average of £329,993. The latter’s position illustrates how prices have risen even in areas long regarded as among London’s cheaper boroughs.
LEAST EXPENSIVE
At the opposite end of the scale, Burnley was identified as the least expensive area for first-time buyers, with an average price of £91,106. Other relatively affordable locations included Aberdeen, Middlesbrough, Sunderland, Blackpool and Kingston upon Hull, where average prices ranged from around £114,000 to under £120,000.
Joseph Lane, mortgage specialist at Mortgage Lane, said the findings reflect the growing challenges facing first-time buyers.
He said: “House prices have remained high despite changes in interest rates, and for many buyers, saving for a deposit is now the biggest hurdle. In areas like London and the South East, prices have simply run ahead of wages for years.
“Places with strong job markets, good transport links, and desirable lifestyles naturally attract more demand. When supply doesn’t keep up, prices rise quickly, and first-time buyers are often the ones who feel that pressure most.
“Not everyone can relocate to more affordable regions, especially if their job ties them to certain cities. That’s why understanding local markets and exploring schemes designed to support first-time buyers is more important than ever in today’s housing landscape.”
