New research from Lloyds Bank has revealed the top UK towns and cities where first-time buyers are making their mark in the property market. The study, which looked at the share of mortgaged home purchases made by first-time buyers, has identified Manchester as the leading city outside of London, with a staggering 70.2% of buyers being first-timers in 2025. This is a significant increase from 67.2% in 2024, showing a growing trend of young people taking their first steps onto the property ladder.
The city of Manchester has long been a popular choice for young professionals and students, with its vibrant culture, thriving job market, and affordable living costs. It comes as no surprise that it has now become the top destination for first-time buyers, with its attractive property prices and strong rental market making it an ideal location for those looking to invest in their first home.
Following closely behind Manchester is Sandwell, a borough in the West Midlands, where 69.7% of buyers are first-timers. This is a significant increase from the previous year, where the figure stood at 66.6%. Sandwell offers a mix of urban and suburban living, with a range of affordable housing options and excellent transport links to nearby cities. This has made it a popular choice for young families and first-time buyers looking to settle down in a more affordable area.
The rise of first-time buyers in these areas can be attributed to various factors, including government schemes such as Help to Buy, which has made it easier for young people to get onto the property ladder. Additionally, the low-interest rates and competitive mortgage deals offered by lenders have also played a significant role in encouraging first-time buyers to take the leap into homeownership.
The research also highlighted other cities where first-time buyers are making a significant impact, including Salford, Tameside, and Barking and Dagenham, all with over 60% of buyers being first-timers. This shows that the trend is not limited to a particular region, but rather a nationwide phenomenon.
The increase in first-time buyers is not only beneficial for the individuals themselves but also for the overall health of the property market. With more young people entering the market, there is a higher demand for housing, leading to an increase in property prices. This, in turn, can have a positive impact on the economy, as it encourages spending and boosts the construction industry.
The research also revealed that London, despite its reputation for high property prices, still has a significant number of first-time buyers, with 56.4% of mortgaged purchases being made by this group. This is a slight increase from the previous year, showing that even in the capital, young people are finding ways to get onto the property ladder.
In conclusion, the rise of first-time buyers in the UK is a positive sign for the property market and the economy as a whole. With cities like Manchester and Sandwell leading the way, it is clear that young people are determined to achieve their dream of homeownership. This trend is expected to continue in the coming years, as more government initiatives and attractive mortgage deals make it easier for first-time buyers to enter the market.
