Revealed - the best city for First Time Buyers today

A new analysis of the housing market has assessed 50 cities in the UK to establish which is best for first time buyers.

Aldermore says its so-called ‘Appeal Index’ shows that despite high interest rates and deposits, inflation and a cost of living crisis, that are still many locations which provide opportunity for first time buyers. 

However, there is a regional divide in homebuying opportunity, with the Index continuing to be dominated by cities in Scotland and the North West of England, while cities in the South trail behind.   

The index looks at 10 indicators across two key pillars – property and lifestyle – that impact first time buyer desirability.  

First time buyers in Scotland are getting over the first hurdle of raising a deposit, more easily than in other cities in the UK, with smaller average deposits to income ratio needed. With an average first time property price of £158,310 in Glasgow and a projected annual increase of 7.0 per cent in the coming years, it also provides a good future investment. 

Manchester jumped this year from 11th last year to fourth place, meeting a number of lifestyle considerations, from competitive salaries, (£33,784 on average) to promising job prospects. Although the buying price is lower than other cities (£218,503 on average), properties in the city offer good returns, with an annual house price increase of 6.8 per cent projected.   

Welsh cities Swansea and Newport held onto their positions coming in at  seventh and ninth respectively. Derby has climbed into the top 10 table in eighth place offering affordable purchasing opportunities but less well on the softer aspects such as commute times and local nightlife.   

Southern cities in the UK failed make this year’s top 10 for the second year in a row. This was largely due to a lack of affordable property for first time buyers with Maidstone, Chelmsford and Basildon remaining the least attractive cities. London dropped one place to 43rd, continuing to sit low in the rankings due to high house prices, unaffordable deposit requirements and its limited potential for house price growth.   

Cities in Yorkshire are rising stars, with Wakefield making the highest jump this year from 32nd place in 2022 to 14th. Leeds takes the 13^th spot with Doncaster (26th), Sheffield (27th) and Barnsley (28th) also making the top 50. 

Jon Cooper, head of mortgages at Aldermore, says: “First time buyers have had a challenging year, facing higher interest rates and increased market uncertainty. It’s therefore understandable that some people are questioning whether or not to put their homebuying plans on the backburner. 

“However, as we can see, there are still fantastic opportunities available in the UK, with many regions not only offering healthy returns on properties but are also fulfilling key lifestyle considerations, which for some, is just as important in the homebuying search.”

Aldermore’s First Time Buyer Appeal Index’s top 10 ‘hotspots’: