Manchester has emerged as the UK’s leading first-time buyer destination outside London, with new entrants accounting for more than 70 percent of all mortgaged home purchases in the city during 2025.
Research from Lloyds Bank shows first-time buyers made up 70.2 percent of mortgaged purchases in Manchester last year, up from 67.2 percent in 2024. The data highlights how affordability pressures are concentrating buyer activity in areas where entry prices remain within reach.
Regional affordability driving buyer patterns
Sandwell in the West Midlands ranked second with 69.7 percent first-time buyer share, followed by Birmingham at 69.4 percent and Luton at 69.4 percent. The top ten is dominated by areas where average first-time buyer prices sit below £300,000.
The average first-time buyer in Manchester paid £230,090 – some £38,110 above the regional average – suggesting buyers are willing to pay a premium for city centre amenities and employment opportunities. By contrast, Sandwell offered entry at just £185,235, nearly £45,500 below the West Midlands average.
What this means for landlords
For buy-to-let investors, areas with high first-time buyer concentrations present a strategic consideration. Strong buyer demand can support exit valuations when landlords decide to sell, but it also means competing with owner-occupiers for stock.
The data also signals where rental demand may soften as more tenants transition to ownership. Areas like Manchester and Birmingham that combine relative affordability with employment growth may see some tenant outflow as mortgage rates stabilise.
| Area | Region | FTB Share | Avg FTB Price |
|---|---|---|---|
| Manchester | North West | 70.2% | £230,090 |
| Sandwell | West Midlands | 69.7% | £185,235 |
| Birmingham | West Midlands | 69.4% | £214,825 |
| Luton | Eastern | 69.4% | £251,798 |
| Thurrock | Eastern | 68.2% | £289,819 |
| Leicester | East Midlands | 66.9% | £221,663 |
| Coventry | West Midlands | 66.5% | £193,022 |
| Harlow | Eastern | 66.1% | £265,156 |
| Stevenage | Eastern | 65.9% | £286,949 |
| Salford | North West | 65.6% | £201,682 |
Source: Lloyds Bank, 2025 data
Homeownership remains a priority
Amanda Bryden, head of mortgages at Lloyds, said affordability remained the primary driver for most first-time buyers.
“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,” Bryden said.
“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.”
The national average outside London shows first-time buyers account for 46.3 percent of mortgaged purchases, with an average purchase price of £254,920.
Editor’s view
The concentration of first-time buyers in these areas tells landlords something useful about where exit routes remain healthy. If you own property in Manchester or Birmingham and are considering selling, you are fishing in a pond full of motivated buyers. But if you are looking to expand your portfolio there, expect competition for stock to remain fierce.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 26 February 2026
Sources: Lloyds Bank
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