New research from Lloyds reveals Britain’s hottest locations for first-time buyers, highlighting the towns and cities where people getting onto the ladder now make up the biggest share of home purchases.
The analysis identifies the locations outside London where first-time buyers make up the highest proportion of all mortgaged home purchases.
After a tough few years of both higher prices and rising borrowing costs, the affordability picture is improving and many first‑time buyer hotspots are thriving. Leading the way is Manchester, where first‑time buyers made up 70.2% of all mortgaged home purchases last year – up from 67.2% in 2024. That’s the highest share anywhere in Britain outside of London.
Manchester’s mix of relatively affordable homes, strong job opportunities, major regeneration projects and a well‑connected transport network continues to draw in younger buyers. The city also saw more people take their first step onto the ladder in 2025 than in any year since 2019.
Next on the list comes Sandwell in the West Midlands, where first-time buyers made up 69.7% of the market.
Why is Manchester so popular with first‑time buyers?
- More affordable homes: Compared to many other major cities, Manchester offers more affordable property prices. The average first-time buyer property price is £230,090, which is almost £25,000 below the British average first-time buyer price (£254,920).
- Lots of choice: The city provides a range of property types, from modern apartments in regenerated areas to traditional terraced houses in the suburbs, catering to different tastes and budgets.
- A growing economy: Manchester has experienced significant economic growth and business investment, particularly in sectors like technology, finance, and media, opening up new job opportunities.
Amanda Bryden, Head of Mortgages, Lloyds:
“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. They can explain what’s affordable for you and talk you through the support available, including low‑deposit options.”
How affordable is it to get on the property ladder?
Getting on the property ladder can be closer than many prospective first-time buyers think. Monthly mortgage repayments can often be cheaper than renting an equivalent property – potentially saving buyers thousands each year and allowing owners to start building up equity.
The majority of first-time buyers say raising a deposit is the biggest challenge to getting on the property ladder, suggesting low-deposit mortgages could be a solution for many – including the 60%+ who buy jointly each year and are able to call on more than one income.
As an illustrative example, based on Manchester’s average first-time buyer property price of £230,090, a 5% deposit works out at £11,505. On this basis, monthly mortgage payments could be around £1,136 – roughly £200 less than the city’s average private rent of £1,337.
Mortgage calculations are based on a 4.72% interest rate fixed for five years, with a 30-year repayment term.
After five years, the homeowner could have added a further £18,682 of equity. Even if property prices stay flat, in this example the loan-to-value ratio of their mortgage would have fallen from 95% to 87%.
Combined with the savings from cheaper mortgage payments compared to renting, this could make a first-time buyer around £31,500 better off after five years – or around £20,000 taking into account the cost of the initial deposit.
Prospective buyers who want to find out how much they might be able to borrow, and how much a mortgage could cost, should check out the Lloyds online mortgage calculator tool which gives results in just a few minutes.
Glasgow leads the way for first time buyers in Scotland, Rhondda Cynon Taf in Wales
Across the rest of Great Britain, the picture varies by region.
Glasgow has the highest share of first-time buyers of any local area in Scotland, at 61.2% and with an average property price of £182,910.
In Wales it’s Rhondda Cynon Taf, where those taking their first steps onto the property ladder make up 57.9% of the local housing market, at an average price of £156,035.
Where are first-time buyers gaining ground fastest?
While the biggest concentrations of first‑time buyers are usually found in major towns and cities, the fastest‑growing markets are often in smaller towns and more rural areas.
The cathedral city of Worcester leads the way, where first-time buyers accounted for 58.7% of the local housing market in 2025, up sharply from 40.6% in 2024.
