Manchester has emerged as Britain’s leading first-time buyer hotspot outside London, according to analysis by a major mortgage lender.
Lloyds Bank has found that 70.2 per cent of all purchases in Manchester were by first-time buyers in 2025, up from 67.2 per cent the year before.
The banking giant’s report highlights relatively affordable housing, high job prospects, significant regeneration projects, and a well-connected transport network as some of the main reasons for attracting younger buyers
While the average first-time buyer property in Manchester costs £230,090 – nearly £25,000 less than the national average of £254,920 across Britain – those stepping onto the property ladder in the city still face paying an average of £38,110 more than their counterparts in the wider North West region.
The city is also home to a diverse range of property types, the report finds, including modern apartments in central districts to traditional terraced homes in its suburbs.
Researchers also highlighted the city’s substantial economic growth and business investment, particularly within the technology, finance, and media sectors, generating new employment opportunities.
Sandwell in the West Midlands secured the second spot on Lloyds‘ list, with first-time buyers making up 69.7 per cent of its market.
In Scotland, Glasgow leads all local areas, with 61.2 per cent of home purchases made by first-time buyers, at an average property price of £182,910.
Meanwhile, Rhondda Cynon Taf stands out as Wales’s top hotspot, where first-time buyers make up 57.9 per cent of the local housing market, with an average price of £156,035.
While major towns and cities typically concentrate the largest numbers of first-time buyers, the fastest-growing markets were often found in smaller towns and more rural settings.
The cathedral city of Worcester was found to be the top fastest-growing area for first time buyers in 2025, making up 58.7 per cent of its local housing market in 2025, a sharp rise from 40.6 per cent in 2024.
Amanda Bryden, head of mortgages at Lloyds said: “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.”
Lloyds used data from its banking group, which also includes Halifax and Bank of Scotland, to make its calculations.