Property hotspots UK: where are first-time buyers going? Halifax reveals the top spots for house hunters

UK property hotspots are often associated with London, but first-times buyers are heading out of the capital to get onto the housing ladder.

The latest Halifax property hotspots data shows Manchester and Slough have been named among first-time buyer hotspots outside of London where homes are selling below the average UK price.

It comes as falling mortgage rates and slowing inflation are expected to boost demand to buy a property.

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But house prices remain high, with many first-time buyers priced out of London.

Research from Halifax has revealed the parts of the country where first-time buyers are making up almost 75% of local purchases and where you can get on the property ladder for below the average UK price.

There are other parts of the UK where Halifax says property is more affordable.

The first-time buyer hotspots

First-time buyers typically face high housing costs as they may have smaller deposits so require a higher loan-to-value from a mortgage lender.

There is support from stamp duty relief for first-time buyers, but that allowance falling from £425,000 to £300,000 from April 2025.

That means first-time buyers can be particularly price sensitive and may need to look further afield for a suitable property.

Halifax has analysed its own house price index data to show the parts of the country outside of London where first-time buyers account for the biggest proportion of home sales.

Manchester leads the list, with first-time buyers accounting for 75% of all home purchases made with a mortgage last year, up from 65% in 2020.

This is even before the Oasis reunion, which may drive demand towards the home city of the Gallagher brothers.

Halifax says Manchester is well-known for its young and vibrant population and benefits from affordable housing, a strong jobs market, excellent transport links, rich cultural scene, and ongoing urban regeneration.

The average first-time buyer property price is £212,891, which is around £35,000 below the British average, Halifax says.

Slough, known as the location for the BBC TV series The Office, is second, representing 73% of all properties purchased with a mortgage last year, up from 54% in 2020.

The average property price in the Berkshire town for first-time buyers is £322,961, around £75,000 above the British average, but still well below the average of nearby London at £490,235.

Sandwell in the West Midlands was the third most popular hotspot in 2023, where first-time buyers also made up 73% of all properties purchased with a mortgage, compared with 71% in 2020.

Properties in Sandwell are cheaper than the British average at £179,058 and also around £40,000 below the average for the West Midlands at £221,307.

"Deciding when and where to buy your first home is a deeply personal choice,” says Amanda Bryden, head of Halifax Mortgages.

“While saving for a deposit and navigating higher interest rates pose a significant challenge for many prospective homeowners, life often intervenes and major milestones such as starting a new job or beginning a family can sway the decision.

 “First-time buyers are often more willing to relocate to new areas in pursuit of finding the ideal home within their financial reach. This flexibility opens up a broader range of possibilities and can lead to more affordable housing options.”