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Sam covers personal finance topics, from the best savings rates to the reasons mortgage lenders say no. He enjoys crunching the numbers to help consumers get ahead.
First-time buyers account for 46% of home purchases with a mortgage in Great Britain, according to new research from Lloyds Bank.
But affordability remains a major barrier for many, particularly those hoping to buy in London and the South East, even after several Bank of England base rate cuts in 2025 helped push mortgage rates down.
Here, Which? rounds up the most popular first-time buyer hotspots, highlight areas where demand is growing, and explain the key costs buyers need to consider.
Manchester has the largest proportion of first-time buyers, at 70%, according to Lloyds research. The Bank's research investigated the most popular areas for new homeowners with mortgages outside of London.
Lloyds Bank offers three potential factors that drive first-time buyers to the city:
If you are considering Manchester as a first-time buyer, you may want to think about Altrincham. A town on the edge of Greater Manchester, Rightmove research found it was the happiest place to live in the North West of England and the sixth happiest in the Great Britain. It's roughly 30 minutes from Manchester via tram and a similar journey time away by car.
No areas in the South East or South West feature among the locations with the highest proportion of first-time buyers. Instead, the list is dominated by places in the East, the Midlands and the North, underlying the affordability challenges facing first-time buyers in the South.
In Scotland, Glasgow has the highest share of first-time buyers of any local area, at 61.2%. The average property price there is £182,910.
In Wales, Rhondda Cynon Taf tops the list. First-time buyers make up 57.9% of the local market, with an average price of £156,035.
The table shows the top ten areas with the highest proportion of first-time buyers outside of London.
| Local authority area | Region | % of FTBs among all buyers 2025 | Average FTB price 2025 | Difference to regional average |
|---|---|---|---|---|
| Manchester | North West | 70% | £230,090 | £38,110 |
| Sandwell | West Midlands | 70% | £185,235 | -£45,491 |
| Birmingham | West Midlands | 69% | £214,825 | -£15,900 |
| Luton | Eastern England | 69% | £251,798 | -£59,990 |
| Thurrock | Eastern England | 68% | £289,819 | -£21,969 |
| Leicester/Oadby | East Midlands | 67% | £221,663 | £2,718 |
| Coventry | West Midlands | 67% | £193,022 | -£37,703 |
| Harlow | Eastern England | 66% | £265,156 | -£46,632 |
| Stevenage | Eastern England | 66% | £286,949 | -£24,838 |
| Salford | North West | 66% | £201,682 | £9,703 |
Source: Lloyds Bank. Research only includes first-time buyers with mortgages
First-time buyers are most commonly found in large urban areas, but Lloyds research shows the fastest‑growing markets are often in smaller towns and more rural areas. This may be due to higher prices in large towns and cities, making buyers consider different areas.
For example, Runnymede, a local authority that encircles a south western section of the M25 motorway is the second fastest growing location for first-time buyers with mortgages. This could be down to a growing number of buyers forced to consider areas further outside of the capital due to high property prices.
The average priced home for a first-time buyer in the London borough of Wandsworth is a little over £600,000, compared to £378,000 in Runnymede, according to the latest Land Registry data.
But is not an area near London where the proportion of first-time buyers is growing fastest. Instead, it is the city of Worcester in the West Midlands.
The town is roughly 40 minutes by train to Birmingham and around an hour to Bristol. You can also travel by car in under an hour to Gloucester, Cheltenham and Stratford upon Avon.
Along with major cities nearby, there is also a wealth of natural beauty. The Malvern Hills are on the doorstep and the beauty of the Wye Valley is under an hour away.
Buyers typically pay below the UK average for their first home in Worcester. The average first-time buyer in the city forks out £226,000, according to Land Registry data.
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First-time buyers have different costs to home movers, as you won't need to pay charges associated with selling a property, but will typically need a deposit. Here are main costs to think about:
You will usually need a deposit. However, some lenders offer no-deposit options, including deals from April Mortgages and Skipton Building Society.
You could also choose low-deposit options such as the 1% deposit mortgage from Yorkshire Building Society and the 2% deposit mortgage from Santande
If you are considering a low deposit or no deposit mortgage, remember you will typically be charged a higher rate. If you can put together a larger deposit it will save you on your monthly repayments.
A typical 10% deposit in Great Britain, based on the average price a first-time buyer pays according to the Halifax house price index, is just over £25,000.
Most first-time buyers will not pay stamp duty, as this only kicks in for properties priced over £300,000.
The average house price across all ten of the most popular first-time buyer hotspots is below £300,000.
If you are planning to purchase a home costing between £300,000 and £500,000 you will need to set aside money to pay stamp duty. If you buy a property for more than £500,000 you will not qualify for first-time buyer stamp duty relief.
To find out exactly what you will owe, head to our stamp duty calculator.
Reallymoving estimates the typical cost of conveyancing at £1,421. When choosing a conveyancer make sure not to simply pick the cheapest option, as a poor service could end up costing you more in the long run.
A typical first-time buyer will spend £462, according to Reallymoving. Although, if you are purchasing an older property you may end up needing a more comprehensive survey, which increases this cost.
To find out more about house surveys and the different types to choose from head to our house surveys guide.
This service costs £432 on average. Make sure to shop around to ensure you find the right deal for you.
Above we've highlighted the main moving costs, but it also important to remember the lesser considered costs, which can still be significant. For example, Which? research found that decorating was the most unexpected cost for homebuyers. While, one first-time buyer we spoke to was surprised by the mortgage fee. Our previous research discovered the best deals for first-time buyers typically come with fees of roughly £999.
To find out more about the costs that catch homebuyers out head to our story on the most unexpected costs facing homebuyers.
