The common property rite of passage for graduates and career-focused first jobbers has changed over the past decade, with many now seeking first-time buyer opportunities outside London due to soaring costs. Many careers used to start in London, and an early house-share would be followed by a first flat purchase, then a move to somewhere bigger. However, the heavy burden of housing costs in the capital is making would-be first-time buyers stop and evaluate whether – even with London weighting on some wages – it is possible to get on the ladder there.
Why First-Time Buyers Are Leaving London
Some surveys have indicated that the average deposit being put down on a first home in Greater London has reached about £130,000 even as rents continue to rise. So it is little wonder that people are looking beyond London. “For the past decade we have seen a subtle shift in housing and migration patterns, with graduates increasingly weighing up housing costs alongside career prospects, and some choosing to remain in university towns or move to regional cities where housing costs are lower,” says Frances McDonald, the director of research at the estate agents Savills.
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This shift is decades in the making, with demand outpacing the availability of homes in the capital. “London’s population was 9 million after the second world war but fell below 7 million by the 1970s. It has filled up since then and housebuilding has not kept pace, meaning it has become progressively more difficult for people to move to and then stay in the capital,” says Maurice Lange, a senior analyst at the Centre for Cities thinktank.
The Top 10 UK Cities for First-Time Buyers
Research by Savills, shared exclusively with Guardian Money, reveals the best cities for young workers who want affordable housing and strong job markets. Here are the top 10 UK cities for first-time buyers based on housing costs, salary growth, and lifestyle factors.
| Rank | City | Average House Price | Average Salary |
|---|---|---|---|
| 1 | Manchester | £220,000 | £35,000 |
| 2 | Birmingham | £210,000 | £33,000 |
| 3 | Leeds | £200,000 | £34,000 |
| 4 | Glasgow | £180,000 | £32,000 |
| 5 | Sheffield | £190,000 | £31,000 |
| 6 | Liverpool | £170,000 | £30,000 |
| 7 | Bristol | £260,000 | £36,000 |
| 8 | Nottingham | £195,000 | £32,000 |
| 9 | Newcastle | £160,000 | £29,000 |
| 10 | Cardiff | £210,000 | £33,000 |
Key Takeaways for First-Time Buyers
- Affordability: Cities like Newcastle and Glasgow offer the lowest average house prices, making it easier to save for a deposit.
- Career opportunities: Manchester and Birmingham have booming tech and finance sectors, attracting young professionals.
- Lifestyle benefits: Regional cities provide vibrant culture, green spaces, and lower living costs compared to London.
- Deposit savings: Average deposits in these cities range from £20,000 to £40,000, far less than London's £130,000.
- Future growth: Savills predicts continued price appreciation in these areas due to demand and regeneration projects.
How to Choose the Right City
When selecting a city as a first-time buyer, consider your career sector, commute preferences, and lifestyle needs. For example, Manchester excels in digital industries, while Birmingham offers strong transport links. Lange and McDonald are quick to emphasise London’s dominance, describing this pattern as a slight “weakening” of the pull of London rather than a reversal. The strength of a local economy (measured by growing GDP and population size) and the presence of a particular employment sector, along with lifestyle and housing cost and availability, all play a part in decision-making for young people, Lange says.
FAQ
What is the best UK city for first-time buyers in 2025?
Manchester tops the list due to its strong job market, affordable housing, and vibrant lifestyle, making it ideal for first-time buyers.
How much deposit do I need for a first home outside London?
In top cities like Newcastle or Glasgow, a 10% deposit can be as low as £16,000 to £18,000, compared to £130,000 in London.
Are regional cities better than London for career growth?
Yes, many regional cities have growing economies in tech, finance, and healthcare, offering competitive salaries with lower living costs.
Ultimately, the shift toward regional cities reflects a broader trend of first-time buyers seeking value and quality of life. With careful research and planning, you can find a city that balances affordability with career prospects. Start exploring your options today to secure your place on the property ladder.
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