Manchester has emerged as Britain’s leading first-time buyer hotspot outside the capital, according to a new analysis by major mortgage lender Lloyds.
The city saw first-time buyers account for 70.2 per cent of all mortgaged home purchases last year, a notable increase from 67.2 per cent in the preceding period.
The report attributes Manchester’s appeal to a combination of factors, including relatively affordable housing, robust job prospects, significant regeneration projects, and an efficient transport network, all of which continue to attract younger purchasers.
The average property price for first-time buyers in Manchester stands at £230,090, nearly £25,000 below the national average of £254,920.
However, those buying their first home in the city still face paying an average of £38,110 more than the wider North West regional average.
The city also boasts a diverse housing stock, ranging from contemporary apartments in redeveloped areas to traditional terraced homes in its suburbs.
Manchester has experienced significant economic growth and business investment, particularly in sectors like technology, finance, and media, opening up new job opportunities, the report added.
Sandwell in the West Midlands is second on the Lloyds list, with first-time buyers making up 69.7 per cent of the market.
Glasgow has the highest share of first-time buyers of any local area in Scotland, at 61.2 per cent, snapping up homes for £182,910 on average.
In Wales, Rhondda Cynon Taf is the top hotspot, where those taking their first steps on to the property ladder make up 57.9 per cent of the local housing market, with an average house price of £156,035.
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 report said the cathedral city of Worcester leads the way in this respect, with first-time buyers accounting for 58.7% of the local housing market in 2025, up sharply from 40.6% in 2024.
Amanda Bryden, head of mortgages at Lloyds said: “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.”
Lloyds used data from its banking group, which also includes Halifax and Bank of Scotland, to make its calculations.
Here are the top 10 local authority areas with the biggest percentages of mortgaged first-time buyers in 2025, according to Lloyds, with the percentage followed by the average first-time buyer house price in 2025 and the cash amount higher or lower than the average for the region:
- Manchester, North West, 70.2%, £230,090, £38,110
- Sandwell, West Midlands, 69.7%, £185,235, minus £45,491
- Birmingham, West Midlands, 69.4%, £214,825, minus £15,900
- Luton, Eastern England, 69.4%, £251,798 minus £59,990
- Thurrock, Eastern England, 68.2%, £289,819 minus £21,969
- Leicester/Oadby, East Midlands, 66.9%, £221,663, £2,718
- Coventry, West Midlands, 66.5%, £193,022, minus £37,703
- Harlow, Eastern England, 66.1%, £265,156, minus £46,632
- Stevenage, Eastern England, 65.9%, £286,949, minus £24,838
- Salford, North West, 65.6%, £201,682, £9,703
Here are the locations in each region or nation with the biggest percentages of mortgaged home purchases are being made by first-time buyers, according to Lloyds, with the percentage in 2025 followed by the average first-time buyer house price in 2025:
- Eastern England, Luton, 69.4%, £251,798
- East Midlands, Leicester/Oadby, 66.9%, £221,663
- North East, Newcastle upon Tyne, 56.3%, £183,324
- North West, Manchester, 70.2%, £230,090
- Scotland, Glasgow, 61.2%, £182,910
- South East, Southampton, 64.9%, £210,620
- South West, Bristol, 59.4%, £298,674
- Wales, Rhondda Cynon Taf, 57.9%, £156,035
- West Midlands, Sandwell, 69.7%, £185,235
- Yorkshire and the Humber, Kingston upon Hull, 53.9%, £118,847
Here are some tips from Ms Bryden for aspiring first-time buyers
Do your research
Start by understanding the steps, from an agreement in principle, to mortgage approval to moving day. Free guides and resources can help make the process clearer.
Consider getting advice
Speaking to a mortgage adviser or broker early can help buyers understand what they can afford and what costs to expect, from the deposit to legal fees. Lenders may offer a video appointment to speak to a mortgage expert at a convenient time.
Explore your options
A mortgage expert may be able to show borrowers options they may not have considered and guide them on ways to build up a fund to get onto the property ladder faster.
Some buyers may want to consider schemes such as shared ownership or low deposit mortgages.
In general, some buyers may be able to access lower mortgage rates by building a bigger deposit.
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