Scotland continues to attract FTBs with Glasgow being the best UK city for getting on the ladder
Aldermore’s First Time Buyer Appeal Index, analysing 50 cities across the UK to understand the best places for first time buyers to buy, has revealed that for the third year running, Glasgow has taken the top-spot.
Aldermore’s First Time Buyer Appeal Index, analysing 50 cities across the UK to understand the best places for first time buyers to buy, has revealed that for the third year running, Glasgow has taken the top-spot.
The Appeal Index looks at 10 indicators across two key pillars to assess FTB desirability. The property pillar examines affordability, house-price growth, the number of FTBs already buying locally and the size of the average FTB deposit relative to local incomes. The lifestyle pillar examines other factors likely to influence FTBs such as commute times, local amenities and the percentage of young people living locally.
Navigating the home-buying process continues to be a challenge for FTBs but despite some difficulties, the Appeal Index reveals there are cities that continue to offer strong potential for those wanting to take their first step onto the property ladder.
Scotland dominates the leaderboard
Scottish cities continue to offer the best options for first time buyers looking to lay down their roots, with Glasgow claiming the top spot. The city boasts a strong population of 25–35-year-olds, the highest share of sales from first time buyers of all the cities analysed (64%) and an average selling price of £155,562. Glasgow also has a significant number of amenities due to its diverse nightlife and offers a significant number of job opportunities for highly skilled workers (61% of the workforce are graduates).
However, the Appeal Index revealed there are some downsides such as a higher than average commute of 20 minutes.
Aldermore’s First Time Buyer Appeal Index’s top 10 ‘hotspots’:
Ranking
City
Region
Overall Score
1
Glasgow
Scotland
75
2
Dundee
Scotland
70
3
Aberdeen
Scotland
70
4
Swansea
Wales
63
5
Manchester
North West
63
6
Liverpool
North West
63
7
Newcastle
North East
61
8
Edinburgh
Scotland
61
9
Derby
East Midlands
60
10
Leeds
Yorkshire
60
Up and coming hotspots
Coventry (13th) and Portsmouth (11th) climbed 16 and 14 places respectively. Portsmouth scored particularly high on the lifestyle pillar with FTBs earning one of the highest average salaries (£37,778) and enjoying good local amenities. FTBs also made up a good proportion of sales in the city (56%) although the average purchase price is higher than in many other cities (£234,629). First time buyers in Coventry had reasonable purchase prices and steady house price growth (4% per annum) with an average deposit of £39,518, making it more attainable than most other cities.
Wigan (20th) is the strongest city for future investment opportunities, with an average annual increase in property values of 7% projected. With reasonable property prices (£161,358) but a low number of young people living locally (18% aged between 25-35) more could be done to try and attract FTBs.
‘Red flag’ spots for first time buyers
Commuter towns Southend (48th), Maidstone (49th) and Basildon (50th) continue to be the least attractive areas for those looking to get on the property ladder with high property prices, low house growth potential and a lack of local affordability making it hard for FTBs to buy there.
Aldermore’s First Time Buyer Appeal Index’s lowest-ranking cities:
Ranking
City
Region
Overall Score
50
Basildon
East
23
49
Maidstone
South East
27
48
Southend
East
28
47
Chelmsford
East
30
46
Bournemouth
South West
35
45
Luton
East
36
44
London
London
40
43
Bradford
Yorkshire
40
42
Northampton
East Midlands
41
41
Cambridge
East
42
Jon Cooper, director of mortgages at Aldermore said:“Buying your first property remains a major life goal for millions of people across the country, despite the many challenges of getting on the housing ladder. 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.”
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