First-time buyers face the steepest entry costs in Westminster and London according to new research highlighting the widening affordability gap between the capital and the rest of the UK.
The study by Mortgage Lane examined what first-time buyers actually paid for homes in 2025 across 70 major cities and large urban areas.
Rather than using overall average prices, it focused specifically on transactions involving new buyers, combining Office for National Statistics data with current local listings to reflect real-time conditions in the starter-home market.
Westminster ranked as the most expensive location, with first-time buyers paying an average of £850,027 for their first property.
OUT OF REACH
London as a whole placed second at £728,555, underlining the extent to which entry-level homes in the capital now sit far beyond typical income multiples without significant financial support from family or wealth built elsewhere.
Archway took third place with an average first-time buyer price of £657,500, followed by Islington at £618,108. Both areas have seen sustained demand driven by transport connectivity and proximity to central employment hubs.
Cambridge was the most expensive location outside the capital, ranking fifth at £404,438, followed by Oxford at £387,602.
In both cities, strong knowledge-economy job markets and constrained housing supply continue to push up prices. Brighton ranked seventh at £379,013, while Sutton (£351,924), Bexley (£348,733) and Croydon (£329,993) completed the top ten – illustrating how even traditionally “affordable” London boroughs have moved sharply out of reach for many new entrants.
AFFORDABLE MARKETS
At the other end of the spectrum, Burnley was the least expensive location for first-time buyers, with an average price of £91,106. Other comparatively affordable markets included Aberdeen, Middlesbrough, Sunderland, Blackpool and Hull, where first-time buyer values typically ranged between £114,000 and £120,000.
Joseph Lane, Mortgage Specialist at Mortgage Lane, says that the findings reflect the growing challenges facing first-time buyers.
And he adds: “House prices have remained high despite changes in interest rates, and for many buyers, saving for a deposit is now the biggest hurdle… Not everyone can relocate to more affordable regions…
“That’s why understanding local markets and exploring schemes designed to support first-time buyers is more important than ever in today’s housing landscape.”
