Manchester named top hotspot for first-time buyers in Halifax study

Manchester has been named the “first-time buyer capital of Britain” after data revealed that those taking their first step on the property ladder accounted for 75% of home purchases made in the city with a mortgage last year.

The research from the mortgage lender Halifax may also provide fresh evidence of how high house prices in London are forcing growing numbers of would-be capital dwellers to ditch that dream and look farther afield.

The bank’s list of the top 10 first-time buyer “hotspots” includes Thurrock in Essex and Dartford in Kent, which border London, as well as the towns of Slough, Reading and Luton.

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The research, based on data from the Halifax house price index, analysed the areas of the country – outside Greater London – where first-time buyers accounted for the biggest proportion of home sales.

At a national level, those who have never owned a property before made up about half (49%) of all homes bought with a mortgage. However, in some parts of the country, the figure is above 70%.

Manchester’s diverse housing stock – from modern apartments in regenerated areas to traditional terrace houses in suburban neighbourhoods – and vibrant cultural scene had led to it becoming a “magnet” for those taking their first steps into home ownership, Halifax said.

In 2023, first-time buyers made up 75% of purchases made in the city by someone who took out a mortgage – up from 65% in 2020. The average first-time buyer property price in Manchester is £212,800, which is about £35,000 below the British average (excluding London) of £247,800.

“A combination of more affordable housing, a strong jobs market, excellent transport links, rich cultural scene and ongoing urban regeneration make it an attractive location for many first-time buyers,” said a Halifax spokesperson.

In second place was Slough in Berkshire, which has become an increasingly popular location for first-time buyers, who accounted for 73% of properties bought with a home loan last year – up sharply from 54% in 2020.

The average price tag in the town for someone buying their first property is £322,900, which is about £75,000 above the British average but well below the typical figure for nearby London, which is just a few thousand pounds short of half a million (£490,200).

With excellent rail connections to London, including via the Elizabeth line, and located just 10 miles from Heathrow airport, Slough was “an attractive option for professionals looking to commute, and for growing families after more space outside the capital”, said the spokesperson.

Third in the table was the local authority area of Sandwell in the West Midlands, where the proportion of first-time buyers was also 73% – perhaps fuelled by an average price for this sector of the market of £179,000, which is significantly cheaper than the British and the West Midlands averages.

Top 10 hotspots for first-time buyers in Britain (outside London) last year

• Manchester

• Slough

• Sandwell

• Leicester/Oadby

• Reading

• Thurrock

• Dartford

• Knowsley

• Wolverhampton

• Luton