Why first-time consumers are flocking to Manchester… and Worcester

Manchester has been crowned England’s top hotspot for first-time buyers, as the northern city’s booming economy has combined with cheaper homes to lure in young professionals.

Across Manchester, first-time buyers comprised 70.2 per cent of all mortgaged homes purchased in 2025, Lloyds Banking Group said. 

Buyers looking to make their first step on the property ladder are being drawn to Manchester’s lower than average property prices, job opportunities and variety of homes on offer, property experts say.

The average first-time buyer property price is £230,090 in Manchester, which is nearly £25,000 below the average first-time buyer price across Britain, which stands at £254,920, Lloyds said. 

Manchester saw more people take their first step on the property ladder last year than in any year since 2019, the findings added. 

‘Manchester remains one of the most attractive cities in the UK for first-time buyers as it’s possible to get on the ladder without having to win the lottery’, Dilraj Singh, a director at The Manchester Estate Agent, told This is Money. 

But a less likely destination is climbing the ranks too. Worcester has been dubbed the fastest growing first-time buyer market, with buyers flocking to the cathedral city known for its period charm. 

Popular: Manchester was the most popular location in England outside London for first-time buyers in England in 2025, Lloyds said

While average property prices in Manchester remain lower than Britain average, they have risen sharply in recent years.

Data from the Office for National Statistics published this month said the average provisional house price in Manchester was £258,000 in December 2025, up 5.7 per cent from December 2024. 

This was higher than the rise in the North West of England, at 4.5 per cent, over the same period. 

If a first-time buyer in Manchester paid £230,090 for a property, a 5 per cent deposit would come in at £11,505, the research said. 

Lloyds said that, again using the example of a first-time buyer purchase in Manchester, the monthly mortgage repayment would be around £1,136, or around £200 less than the city’s average private rent of £1,337. 

With London excluded from the mix, Sandwell in the West Midlands was the second most popular destination for first-time buyers in 2025. 

On average, first-time buyers stumped up £185,235 for a property last year, which is well below the national average. 

Across all mortgaged homes, first-time buyers comprised 69.7 per cent of buyers in Sandwell in 2025. 

Birmingham, Luton, Thurrock and Leicester also proved popular with first-time buyers in 2025. All saw first-time buyers make up well above 60 per cent of all purchases last year. 

Also making it to the top 10 locations for first-time buyers last year were Coventry, Harlow, Stevenage and Salford. 

In Coventry, the average spent by first-time buyers on a home was £193,022, against £201,682 in Salford. 

Worcester fastest-growing first-time buyer market 

While the biggest concentrations of first‑time buyers are typically found in major towns and cities, the fastest‑growing markets are often in smaller towns and more rural areas.

The cathedral city of Worcester led the way, with first-time buyers accounting for 58.7 per cent of the local housing market in 2025, up sharply from 40.6 per cent in 2024. 

Other locations in Runnymede and East Hampshire are also seeing the proportion of first-time buyers rise rapidly. 

Beyond England, Glasgow had the highest share of first-time buyers of any local area in Scotland last year, at 61.2 per cent and with an average property price of £182,910.

In Wales, the most sought after hotspot was Rhondda Cynon Taf, where those taking their first steps on the property ladder comprised 57.9 per cent of the local housing market in 2025, paying around £156,035 for a home. 

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.’

Labour is reported to be mulling a successor to Help to Buy to support first-time buyers, amid a sharp slowdown in new-build sales. 

‘The Government has pledged to build 1.5million new-build homes across England by the end of parliament.