Manchester tops the list of places in the country (outside London) for first time buyers (FTBs), followed by Slough and Sandwell according to research released by Halifax. Leicester, Reading, Knowsley and Luton all feature in the top 10 list compiled from figures across 2023.
49% of all homes bought nationally with a mortgage were purchased by first time buyers according to Halifax; in Manchester that figure is 75%. The bank cites greater affordability, diverse housing stock, and economic growth as key reasons for FTB activity in the area.
The average first-time buyer property price in Manchester is £212,891, around £35,000 below the British average, and the range of accommodation available, from apartments in regenerated areas to traditional terraced houses in suburban neighbourhood, caters for different housing needs. Manchester has also benefited from significant economic investment across technology, finance, and media, with the BBC moving much of its output to MediaCity in 2011, alongside the regeneration of areas like Spinningfields which is home to many law and finance firms.
Excellent road and rail networks feature in the top three first time buyer locations with Slough’s proximity to Transport for London’s Elizabeth Line for commuting into London one of the reasons cited for its increase in the number of FTBs, at 73% of property purchases with a mortgage in 2023 compared to 54% in 2020. The development of high tech jobs along the M4 – sometimes dubbed the UK’s Silicon Valley – is also appealing to FTBs.
Sandwell, in the Black Country, is also well connected to the M5 and M6 motorways, with links in the cities of Birmingham and Wolverhampton. Average property prices are also some £40,000 below the average for the area at £179,058 compared with £221,307 for the West Midlands.
| 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 | |
Lloyds Banking Group have recently announced additional support for FTBs through the Halifax and Lloyds brands. First-time Buyer Boost offers up to 5.5x annual household income for eligible FTBs, up from 4.49x, with the bank claiming it will lead to an extra £2bn of lending.
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.”
Toby Leek, NAEA Propertymark President, added:
“It is positive to see such an uplift on the number of first-time buyers having the confidence and ability to approach the housing market. Getting a foothold on the housing ladder is a massive undertaking and has been even more so considering all the economic turbulence of the last few years. With Parliament now back in session, it’s vital the UK Government share their timetable on tackling current issues and especially concerning what future support may be offered to those who aspire to buy.
“Across the UK, there is a significant mismatch between housing supply and actual demand, and this factor can contribute towards higher prices in certain areas. It would be welcome news for first time buyers to see the UK Government’s ambition of near two million new properties across the next five years spring into life to help ease current pressures.”
