Aldermore has analysed 50 cities across the UK to understand the best places for first-time buyers to buy, revealing that for the third year running, Glasgow has taken the top spot.
The Appeal Index looks at 10 indicators across two key pillars to assess FTB desirability. The property pillar examines affordability, house-price growth, the number of FTBs already buying locally and the size of the average FTB deposit relative to local incomes. The lifestyle pillar examines other factors likely to influence FTBs such as commute times, local amenities and the percentage of young people living locally.
Navigating the home-buying process continues to be a challenge for FTBs but despite some difficulties, the Appeal Index reveals there are cities that continue to offer strong potential for those wanting to take their first step onto the property ladder.
Scotland dominates the leaderboard
Scottish cities continue to offer the best options for first-time buyers looking to lay down their roots, with Glasgow claiming the top spot. The city boasts a strong population of 25–35-year-olds, the highest share of sales from first-time buyers of all the cities analysed (64%) and an average selling price of £155,562.
Glasgow also has a significant number of amenities due to its diverse nightlife and offers a significant number of job opportunities for highly skilled workers (61% of the workforce are graduates).
Up and coming hotspots
Coventry (13th) and Portsmouth (11th) climbed 16 and 14 places respectively. Portsmouth scored particularly high on the lifestyle pillar with FTBs earning one of the highest average salaries (£37,778) and enjoying good local amenities.
FTBs also made up a good proportion of sales in the city (56%) although the average purchase price is higher than in many other cities (£234,629). First-time buyers in Coventry had reasonable purchase prices and steady house price growth (4% per annum) with an average deposit of £39,518, making it more attainable than most other cities.
Wigan (20th) is the strongest city for future investment opportunities, with an average annual increase in property values of 7% projected. With reasonable property prices (£161,358) but a low number of young people living locally (18% aged between 25-35) more could be done to try and attract FTBs.
‘Red flag’ spots for first-time buyers
Commuter towns Southend (48th), Maidstone (49th) and Basildon (50th) continue to be the least attractive areas for those looking to get on the property ladder with high property prices, low house growth potential and a lack of local affordability making it hard for FTBs to buy there.
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.
"Our Appeal Index demonstrates 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.
“Would-be buyers should plan carefully to ensure they are prepared for the range of costs involved and should seek advice from a broker, who can help guide them through the process and navigate the complexity of the process.”
