Manchester has emerged as Britain’s leading first-time buyer hotspot outside London with new data showing that seven in 10 mortgaged home purchases in the city are now made by buyers stepping onto the ladder.
Research from Lloyds found that first-time buyers (FTBs) accounted for 70.2% of all mortgaged purchases in Manchester in 2025, up from 67.2% the previous year – the highest share of any area in Britain outside the capital.
Nationally, first-time buyers now make up around half of all mortgaged purchases across Great Britain, rising to more than 70% in the most concentrated markets.
Manchester’s combination of comparatively affordable homes, economic growth and transport connectivity continues to attract younger buyers.
FIRST-TIME BUYER BOOST
The data suggests that as affordability pressures ease and wage growth strengthens, first-time buyers are regaining momentum – reshaping local markets well beyond London.
The average first-time buyer property price in Manchester stands at £230,090, below the British average of £254,920.
Sandwell ranks second nationally, with FTBs accounting for 69.7% of mortgaged purchases, followed by Birmingham (69.4%) and Luton (69.4%). Salford also features in the top 10, underlining the strength of demand across the North West and West Midlands.
Smaller markets are seeing the fastest growth in first-time buyer activity.
While major cities dominate overall volumes, smaller markets are seeing the fastest growth in first-time buyer activity. Worcester recorded the sharpest increase, with FTBs rising from 40.6% of mortgaged purchases in 2024 to 58.7% in 2025 – an 18.1 percentage point jump.
Elsewhere, Runnymede and East Hampshire in the South East, Angus in Scotland and West Lancashire have also seen double-digit increases in first-time buyer market share.
Regionally, Manchester tops the North West, while Glasgow leads in Scotland (61.2%) and Rhondda Cynon Taf in Wales (57.9%). In the South East, Southampton records the highest share at 64.9%.
MANCHESTER MAGNET
Amanda Bryden, Head of Mortgages at Lloyds, says: “Choosing your first home is a huge moment. Affordability is the number one priority for most first-time buyers, and we’re seeing more people cast their net wider to find places that match both their lifestyle and their budget.
“That flexibility can quite literally open up more doors. Manchester is a magnet for those seeking modern city-living, while increasing demand for Worcester’s more historic charm shows just how quickly new and unexpected hotspots can emerge.
“Homeownership remains one of the most effective ways to build long-term financial security. If you’re thinking about buying, speaking to a mortgage expert is a great first step.”
INCREASE HOUSING SUPPLY
Mary-Lou Press, NAEA Propertymark President, adds: “A steady flow of new entrants is crucial to a healthy housing market and cities like Manchester show how job growth and relatively accessible pricing can drive demand.
“However, significant barriers remain. Saving for a deposit, meeting affordability checks and navigating a complex buying process still present real challenges, while high first-time buyer concentrations highlight strong competition for suitable homes.
“Growth in areas such as Worcester also suggests buyers are widening their search in response to pricing pressures. To maintain momentum, we need increased housing supply, a stable mortgage market and better support to help consumers buy with confidence.”
