New research from Lloyds Bank has shed light on the current state of the UK housing market, specifically in terms of first-time buyers. The study, which looked at the share of first-time buyers in mortgaged home purchases, has revealed some interesting findings about the towns and cities where this group is most prevalent.
According to the research, outside of London, Manchester is the top city for first-time buyers, with a staggering 70.2% of mortgaged home purchases made by this group in 2025. This is an increase from 67.2% in 2024, indicating a growing trend of first-time buyers entering the property market in the city.
Following closely behind Manchester is Sandwell, a borough in the West Midlands, where 69.7% of buyers are first-timers. This is a significant jump from the previous year, where first-time buyers accounted for 65.4% of mortgaged home purchases in the area. This shows a clear shift in the housing market, with more and more first-time buyers taking the leap and purchasing their own homes.
Other areas that made it to the top of the list include Salford, Tameside, and Oldham, all located in the Greater Manchester region. These areas have seen a surge in first-time buyers, with 69.4%, 68.7%, and 68.3% respectively. This is a positive sign for the region, as it indicates a healthy and diverse housing market with opportunities for all types of buyers.
The research also highlighted some interesting trends in London, where first-time buyers accounted for 58.8% of mortgaged home purchases in 2025, up from 56.5% in 2024. This is a significant increase compared to the previous year, indicating a growing trend of first-time buyers in the capital city. This is a positive sign for the city, as it shows that despite the high property prices, first-time buyers are still able to enter the market and secure their own homes.
The study also looked at the overall share of first-time buyers in the UK, which stood at 51.7% in 2025, up from 49.6% in 2024. This is a positive trend for the country, as it shows that more and more young people are able to take the important step of purchasing their own homes.
The increase in the share of first-time buyers in the UK can be attributed to a number of factors. One of the main reasons is the government’s Help to Buy scheme, which provides financial support to first-time buyers in the form of equity loans. This has made it easier for young people to get onto the property ladder and has contributed to the increase in first-time buyers across the country.
Another factor is the low interest rates on mortgages, making it more affordable for first-time buyers to take out a loan and purchase a home. This, coupled with the rise of shared ownership schemes, has made it easier for young people to afford a property and has contributed to the increase in first-time buyers in the UK.
The rise in first-time buyers is a positive sign for the UK housing market, as it indicates a healthy and diverse market with opportunities for all types of buyers. It also shows that the government’s efforts to support first-time buyers are paying off, and more and more young people are able to achieve the dream of homeownership.
In conclusion, the new research from Lloyds Bank has shed light on the UK towns and cities where first-time buyers account for the largest share of mortgaged home purchases. The increase in first-time buyers in these areas is a positive sign for the housing market and the country as a whole. With the government’s support and low interest rates, we can expect to see this trend continue and more young people achieving their dream of owning their own home.
