Glasgow, Dundee and Aberdeen have been ranked the best cities for first-time buyers, a report has found.
According to Aldermore’s First-Time Buyer Appeal Index, which analysed 50 cities in the UK, this is the third year in a row that Glasgow has been ranked as the best city for first-time buyers.
The report said that it had a strong population of 25 to 35-year-olds and 64% of sales came from first-time buyers.
The average selling price is £155,562, a “significant number of amenities” and job opportunities, but a downside it longer than average commute times.
Rounding out the top 10 was Swansea, Manchester, Liverpool, Newcastle, Edinburgh, Derby and Leeds.
The index uses 10 indicators across two key pillars to assess first-time buyer desirability. The property pillar examines affordability, house price growth, the number of first-time buyers already buying locally and the size of the average first-time buyer deposit relative to local incomes.
The lifestyle pillar examines other factors likely to influence first-time buyers such as commute times, local amenities and the percentage of young people living locally.
Basildon, Maidstone and Southend came in 50th, 49th and 48th positions with “high property prices, low house growth potential and a lack of local affordability” barriers for first-time buyers.
Coventry and Portsmouth climb first-time buyer list and Wigan best for investment
The report continued that Coventry and Portsmouth climbed 16 and 14 places respectively to 13th and 11th positions.
Portsmouth scored highly on the lifestyle side, with first-time buyers earning some of the highest average salaries of £37,778 and having good local amenities.
First-time buyers made up over half of sales, but the purchase price is slightly higher than other cities at £234,629.
In Coventry, “reasonable purchase prices and steady house price growth”, along with an average deposit of £39,518 made it “more attainable” for first-time buyers.
Wigan, which took 20th position, was the strongest city for future investment opportunities with an average annual increase in property values of 7% projected.
The city has average property price of £161,358 but a low number of young people living locally so young people, with the lender adding that more could be done to attract first-time buyers.
First-time buyers have ‘opportunities in every region’
Jon Cooper, director of mortgages at Aldermore, said buying a first property was a “major life goal for millions of people across the country, despite the many challenges of getting on the housing ladder”.
He continued: “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.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
