A study has shed light on the most popular UK locations to get a first-time buyer mortgage, and the results make for interesting reading.
The research, which excludes the London area and was based on the Halifax House Price Index, found that Manchester is the current first-time buyer hotspot on these shores.
The data revealed that first-time buyers made up a whopping 75% of all housebuyers in the Northern city during 2023, and the average property price there is £212,891.
Other popular locations among this demographic were Slough in the South East and Sandwell in the West Midlands, with first-time buyers accounting for 73% of all purchases in both places.
You can view the data in full below:
Local authority area | Region | Percentage of FTBs among All Buyers | Average FTB price |
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 |
In addition to revealing the most popular locations among first-time buyers, the figures confirm that around 49% of house purchase transactions in the UK come from this demographic, and the average property price is £247,862 (London data excluded).
What is driving demand in these locations?
Analysing the top ranking locations, there are trends running through them that could explain why they are so attractive to first-time buyers right now. Common theme include:
- Affordability: Typical house prices in three of the top five locations are lower than the national average, which is considered a big draw among first-time buyers.
- Transport links: All of the top three locations are well known for having good transport links. Manchester and Slough, for example, are well connected to London via their rail networks, and Sandwell is connected to the Midlands’ major cities, like Boirmingham and Wolverhampton, via motorways including the M5 and the M6.
- Economic factors: The top three locations have enjoyed economic growth in recent years, which has resulted in the creation of jobs. For instance, Manchester and Slough both have thriving tech sectors, and Sandwell has undergone regeneration.
Do you need a local broker if you’re buying in these areas?
Using a mortgage broker if you are buying anywhere in the UK is recommended. There are advisers who specialise in first-time buyers, and they know exactly which schemes and lenders are the best fit for this demographic to help them onto the property ladder.
However, you don’t necessarily need to use a broker in your local area, as any mortgage adviser worth their salt will be able to arrange mortgages anywhere in the UK. They can work using phone, email, video calls and other methods of communication to arrange the best mortgage deal for you, regardless of where the property you’re buying is located.
That said, at Teito, we have brokers on our books based all over the UK, and if your preference is for an adviser in your local area, we will accommodate that where possible.
