New research from Lloyds has revealed some promising news for first-time home buyers in the UK. According to their latest report, there are certain towns and cities where first-time buyers are making up a significant share of mortgaged home purchases. This is a positive sign for those looking to take their first step onto the property ladder.
The report, which analyzed data from 2024 and 2025, found that outside of London, Manchester is leading the way with the highest percentage of first-time buyers in the mortgaged home market. In 2025, first-time buyers accounted for a whopping 70.2% of all mortgaged purchases in the city, up from 67.2% in the previous year. This is a significant increase and shows that Manchester is becoming an increasingly popular destination for young people looking to buy their first home.
Following closely behind Manchester is Sandwell in the West Midlands, where 69.7% of buyers entering the market were first-time buyers. This is another impressive figure and highlights the growing trend of young people choosing to buy their first home in this area. Other towns and cities that made it to the top of the list include Slough, Luton, and Peterborough, all with over 60% of first-time buyers in the mortgaged home market.
This research is a positive indication of the current state of the UK property market. With rising house prices and the ever-increasing cost of living, it can be challenging for first-time buyers to get onto the property ladder. However, these findings show that there are still opportunities for young people to make their dream of owning a home a reality.
One of the main reasons for this increase in first-time buyers is the government’s Help to Buy scheme, which has been instrumental in making homeownership more accessible for young people. This scheme allows first-time buyers to purchase a property with just a 5% deposit, with the government providing an additional 20% equity loan (40% in London) to help with the remaining cost. This has been a game-changer for many young people who would have otherwise struggled to save for a large deposit.
Another factor contributing to the rise in first-time buyers is the growing number of new developments and affordable housing schemes in these areas. Manchester, for example, has seen a surge in new housing developments, providing more options for first-time buyers. These developments often come with attractive incentives, such as Help to Buy and shared ownership schemes, making it easier for young people to get onto the property ladder.
The research also highlights the importance of these towns and cities in the UK’s economy. With more young people choosing to settle in these areas, it brings a boost to the local economy and creates a thriving community. This is especially important for areas like Manchester, which has seen significant regeneration in recent years, making it an attractive place to live and work.
The news of Manchester and Sandwell topping the list of towns and cities with the highest percentage of first-time buyers is a testament to the hard work and dedication of the local governments and developers. It shows that their efforts to make homeownership more accessible and affordable for young people are paying off.
In conclusion, the latest research from Lloyds is a positive sign for first-time buyers in the UK. It shows that there are still opportunities for young people to get onto the property ladder, especially in towns and cities like Manchester and Sandwell. With the help of government schemes and the growing number of affordable housing options, owning a home is becoming a more achievable goal for many young people. This is not only good news for first-time buyers but also for the overall health of the UK property market.