For many first-time buyers, the dream of owning their own home seems out of reach.
The average house price for a first-time buyer was £288,136 last year – and high mortgage interest rates have only further ruined the prospect of reasonable monthly payments for early career salaries.
Plus, the average age someone buys their first home is creeping up – from 32 in 2012 to 34 last year – as soaring property prices and squeezed budgets make it harder to save for a deposit.
But there are vibrant UK cities which offer first-time buyers the best chance of taking a step on to the first rung of the property ladder.
Glasgow, with its impressive gothic cathedral, was crowned the best UK city for first-time buyers for the third consecutive year
Glasgow has been crowned the best UK city for first-time buyers for the third year in a row, according to analysis of 50 locations for Money Mail by Aldermore Bank.
Aldermore has ranked each of the 50 cities based on ten factors. There are four ‘property pillar’ indicators – which include average first-time buyer selling price and first-time buyer properties as a percentage of sales.
The remaining six factors are part of a ‘lifestyle pillar’, which includes indicators such as the average commute time, the percentage of population who are aged 25 to 35 and the average life satisfaction.
These scores are used to create a final figure which ranks the cities.
Since last year Coventry has climbed the list by 16 places to spot 13 while Birmingham fell by a huge 21 places to spot 33.
Jon Cooper, director of mortgages at Aldermore, said: ‘Buying your first property remains a major life goal for millions of people across the country, despite the many challenges of getting on the housing ladder.
‘There are buying opportunities in every region, with cities offering different attributes for first time buyers. Even with the significant market and political uncertainty our insights show there are still options available for first time buyers hoping to realise their dream.’
Today Mail Plus can reveal the best cities to be a first-time buyer – and the worst.
1. Glasgow
George Square is the heart of Glasgow, which boasts 17 restaurants and pubs per 10,000 people
Glasgow once again tops the list of the best places to buy a first home – with strong rankings across selling price, growth, affordability and average full-time pay.
The city’s first-time buyer selling price is one of the lowest on the list, with the average first-time buyer property selling for £155,562.
Deposits average £33,934 for first-time buyers – 0.9 times the average annual income – boosting how affordable it is.
Glasgow also has the highest percentage of first-time buyer properties as a share of sales on the list – with some 64 per cent making up this category. This means it’s a popular choice for young people buying their first home.
Almost one in four people who live in Glasgow are aged 25 to 35 – and there are 17 restaurants and pubs per 10,000 people, a big draw for young people who want a vibrant and exciting social life.
But prospective buyers should be aware of lifestyle factors. The average commute time for Glaswegians is 20 minutes, which is higher than average.
Plus the life satisfaction score is one of the lower rates among the cities.
But Cliff Dunn of Martin & Co Estate Agents said it’s the cultural factors in Glasgow that appeals to first-time buyers, even though affordability and high interest rates continue to be an issue.
‘It’s a very vibrant city. It’s culturally diverse city and Glaswegians are well known for being really friendly.’
Big employers such as the hospital are also a draw for first-time buyers, Mr Dunn said.
2. Dundee
The V&A Museum in Dundee, which scores well for affordability and has a low average commute time of just 15 minutes
Another Scottish city takes second place in the best places to buy a first home.
Dundee has low selling prices, a high proportion of first-time buyers and has a low commute time – just 15 minutes, third only to Aberdeen and Sunderland.
It also ranked second last year. Scottish cities are a ‘solid’ choice for first-time buyers, said Mr Cooper.
He added: ‘Scottish cities tend to score highly across a wide range of metrics.
‘Property prices are more affordable when compared to the average income, workforces are generally more highly-skilled than average, and first time buyers make up a more significant chunk of those buying properties in these cities.’
However, first-time buyer homes in Scotland’s fourth-largest city have little growth, with prices increasing by an annual average of just 2.8 per cent. This metric is calculated over the past five years.
This could mean a Dundee house may not be a good investment – but as affordability is good and the city scores relatively high on lifestyle factors, it may be the perfect spot for someone buying their first home.
3. Aberdeen
Aberdeen completes an all-Scottish top three and first-time buyers can expect to purchase a property for as little as £117,537 on average
Aberdeen took third in our rankings, the same spot as 2023, to complete an all-Scottish top three.
First-time buyers in the most northern city on our list can expect to buy their house for £117,537 – the best price compared to other hotspots.
The average deposit for a first home is just 0.6 times the average income – the most affordable on the list.
Average full-time pay is one the strongest across the board too at £40,560.
However, it’s the only place out of 50 where first-time buyer house prices have actually decreased – with prices falling by an average annual rate of 2.6 per cent. This metric is calculated over the past five years.
This could mean you’ll lose money if you sell your home if prices don’t grow by the time you want to move up the ladder.
4. Swansea
More than half of homes sold in Swansea are first-time buyer properties – and prices are low at an average of £171,369
Swansea is the next best city for first-time buyers and narrowly missed out on the top three spots.
Some 59 per cent of homes sold in the Welsh coastal city are first-time buyer properties. Coupled with a relatively low selling price of £171,369, Swansea is an attractive and affordable option for those buying their first home.
It’s soared three spots in the last year, too, meaning it’s an up-and-coming place for starter homes.
Lower average full-time pay of £32,230 is a red flag for the city but it doesn’t impact deposit affordability too greatly.
The average deposit of £32,757 is around one year of average pay, making a first home in the city relatively affordable.
However, just 17 per cent of the population are aged 25 to 35 – so this may not be the perfect place for young people looking for a home with lots of people of similar ages.
5. Manchester
Manchester scores well for its lifestyle factors but first-time buyers will have to stump up a little more cash with average prices of £213,760 in the city
The northern city of Manchester comes in at number five on Aldermore’s index – dropping one place when compared to last year’s list but still a strong choice for those buying their first home.
It’s one of a myriad of northern cities which score highly.
Buyers will see a slightly higher average first house price of £213,760 and an average affordability score with despots at 1.2 times the annual income.
But while it ranks as average in the property pillar, Manchester’s lifestyle factors boost its rating – with good average full-time pay and a highly skilled workforce.
There’s strong potential to boost your wealth when you sell your property to move up the ladder, too, as the average annual increase over the past five years for first-time buyer properties is 5.5 per cent.
Max Rosenthal, an estate agent in Manchester, said: ‘There’s been a lot of redevelopment money pumped into the city, which is exciting for first-time buyers.
‘There’s a lot going on here – there’s so much nightlife and the high street is mainly food places. It’s a place where young people want to be and it’s still cheaper than London.’
More than a quarter of Manchester’s population is between 25 and 35 – the highest on the list – and there are 19 pubs and restaurants per 10,000 people.
6. Liverpool
Liverpool, home of The Beatles, is a wise place to invest with an average annual growth of 6.4 per cent
Liverpool continues the trend of northern cities clutching the top spots as it ranks sixth for those buying their first home.
It’s fallen by one ranking since 2023 but an average first-time buyer property selling price of £156,581 plus average despots sitting at 0.8 times annual income are factors which still make the city an attractive spot.
A Liverpudlian home could be a good future investment opportunity with an average annual growth of 6.4 per cent. This means you could make money when selling your future home to invest in a family property.
However, the city is one of the least popular on our list for first-time buyers as they make up just under a half of sales.
7. Newcastle
Newcastle is an excellent place to live for those seeking an active social life, with 19 pubs and restaurants per 10,000 people
The seventh best first-time buyer hotspot is Newcastle, down one spot on last year.
It’s yet another northern city dominating the top spots in the league.
Newcastle excels in the ‘lifestyle pillar’ with 19 pubs and restaurants per 10,000 people and a high life satisfaction score.
The property factors are average in comparison. Although the average selling price isn’t extortionate at £168,585, there’s little house price growth with an average annual increase of 3.9 per cent.
Its lowest scores in the index come from average full-time pay – which sits at a poor £33,264 – and the proportion of property sales which are first-time buyer houses – which is 50 per cent.
8. Edinburgh
Edinburgh’s cultural attractions, including its famous castle, make it a desirable place to live and residents of the Scottish capital are some of the happiest in the UK
Scotland continues to rule the roost of the best cities for first-time buyers as its capital city also scores highly.
Edinburgh comes in eighth plus it’s risen two spots in the ranking since last year, mainly down to a huge jump in resident satisfaction.
The city’s cultural attractions such as Arthur’s Seat and Edinburgh Castle make it a desirable place to live no matter of age – but some 22 per cent of its population are 25 to 35, giving it a good score in the index.
Edinburgh’s residents are some of the happiest in the country, plus the workforce is highly skilled and there are 22 pubs and restaurants per 10,000 people.
Its ‘lifestyle pillar’ rates the best out of the top ten in Aldermore’s index.
But the bank’s ‘property pillar’ rating is why the city misses out of the higher spots.
Affordability is the main issue for this capital city as the average first time buyer deposit is £67,435 – some 1.7 times the average annual income.
It’s the least affordable deposit in the top ten cities – and the average first-time buyer property price of £264,362 is the highest too.
9. Derby
Derby is close to the Peak District which makes it the perfect location for buyers who love the outdoors
Derby just makes it into the top ten hotspots with its first-time buyer selling price a commendable £175,333
The city is extremely affordable as the average first-time buyer deposit is £32,533, just 0.8 times the average income.
It lacks some lifestyle factors – there are only 11 pubs and restaurants per 10,000 people and just one in five people are aged 25 to 35.
But Derby is close to the Peak District so there’s plenty to do for young people who love the outdoors.
10. Leeds
Leeds is known for its nightlife and residents have a relatively good life satisfaction score
Leeds narrowly makes it into the top ten after it shot up three places in the rankings over the past year.
The northern city known for its nightlife was in place 13 in the 2023 Aldermore list but an increase in full-time pay to £32,585 alongside an increase in the deposit affordability score has given the city a boost to a top ten spot.
The average first-time buyer housing deposit does breach the £200,000 mark by less than £200.
Average commute time is 22 minutes which is one of the highest across the board – but its residents have given a relatively good life satisfaction score.
…and the worst places to buy your first home
Places in the East and South East sit at the bottom of the list with Southend, Maidstone and Basildon ranking 48, 49 and 50 on the list respectively.
While Maidstone scores highly for life satisfaction, it has a low score for the average first-time buyer house selling price at £277,105.
Basildon scores very poorly for the annual increase in the first-time buyer price, with just 2.6 per cent of growth.
These commuter towns have high property prices and low house growth prospects – making them unattractive for prospective first-time buyers.
Unsurprisingly London is also low on the list, as the capital ranks in spot 44.
Mr Cooper said: ‘There are diverse reasons for cities in the south being less competitive depending on where each city is located.
‘In general, the south has significantly higher purchase prices and more challenging deposit requirements, preventing some buyers from getting on the property ladder.’
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
