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Alexis Conran shares essential tips for first time buyers
A first-time buyer surge is leading a property market revival with three in four homes going to young people in some parts of Britain, it has been revealed.
The city of Manchester, which is undergoing massive regeneration, has been named at the top of a list of first-time buyer hot spots, ahead of Slough, Sandwell, parts of Leicester and Reading in research by Britain’s biggest mortgage lender.
First-time buyers (FTBs) are the lifeblood of the housing market as they start the chains which trigger moves further up the property ladder.
At a national level, they account for around half – 49 percent – of all homes bought with a mortgage, but this rises to 75 percent in areas where developers have moved in to erect new blocks and repurpose once derelict wharfs and warehouses.
At the same time, banks and building societies have launched a raft of new specialist home loans to help young buyers, including offering the ability to borrow up to 5.5 times salary.
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Looking at FTB hot spots, Halifax said: “Manchester is now the first-time buyer capital of Britain.
“The city is well-known for its young and vibrant population. 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.
“Compared to many other cities, Manchester offers more affordable property prices. The average first-time buyer property price is £212,891, which is around £35,000 below the British average.
“The city provides a range of property types, from modern apartments in regenerated areas to traditional terraced houses in suburban neighbourhoods, catering to different tastes and budgets.
“Economic growth: Manchester has experienced significant economic growth and business investment, particularly in sectors like technology, finance, and media, opening up new job opportunities.”
Second on the list is Slough in Berkshire, which has become an increasingly popular location for first-time buyers, who represented 73 percent of all properties purchased with a mortgage last year, up from 54 percent in 2020.
First-time buyers (FTBs) are the lifeblood of the housing market (Image: Getty)
The area may have been famously derided by poet Sir John Betjeman and, more recently, in the Ricky Gervais comedy The Office, however, Halifax said: “Over recent years there’s been significant investment in regeneration projects in the town, including new residential, retail and leisure developments.
“The average property price in the town for first-time buyers is £322,961, around £75,000 above the British average, but still well below the average of nearby London (£490,235).
“With excellent rail connections into London, including via the Elizabeth line, and located just 10 miles from Heathrow, it’s an attractive option for professionals looking to commute, and for growing families after more space outside of the capital.
“There is also a strong employment market in the town itself. Forming part of what is sometimes dubbed the ‘UK’s Silicon Valley’ along the M4 corridor, it’s fast becoming a hub for large data centres, bringing hi-tech jobs to the area.”
Third spot goes to Sandwell, in the West Midlands, where first-time buyers also made up 73 percent of all properties purchased with a mortgage last year.
Halifax said: “Properties in Sandwell are significantly cheaper than the British average at £179,058 and also around £40,000 below the average for the West Midlands (£221,307).
“This part of the Black Country is well-connected by major road networks, including the M5 and M6 motorways, and with good train links to Birmingham and Wolverhampton, it’s an ideal location for commuters.
“Sandwell is another area that has undergone significant economic regeneration and business investment over recent years. The borough also boasts 1,200 hectares of parks and green spaces, making it particularly popular with young families.”
First-time buyer hot spots
Local authority area Percentage of FTBs among All Buyers1 (2023) Average FTB price (2023)
City of Manchester 75%
Slough
Sandwell
Leicester / Oadby 72%
Reading 72%
Thurrock
Dartford
Knowsley
Wolverhampton
Luton 70%
Source: Halifax
A first-time buyer surge is leading a property market revival (Image: Getty)
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.”
The president of estate agent trade body NAEA Propertymark President, Toby Leak, said: “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.”