Scottish cities offer sanctuary for first time buyers as Glasgow retains crown as the best city for new buyers

Aldermore’s First Time Buyer (FTB) Appeal Index reveals Glasgow as the best city in the UK for first-time buyers
Scotland and cities in the North West of England dominate this year’s Appeal Index, with Glasgow, Dundee and Aberdeen rounding out the top three; Manchester and Liverpool take fourth and fifth place
Biggest leap this year on the leaderboard was Wakefield jumping 18 places from 32^nd in 2022 to 14^th and Birmingham from 27^th in 2022 to 12th
Basildon, Chelmsford and Maidstone continue to be ranked the least attractive of the major UK cities for first-time buyers, predominantly due to affordability problems
The Index is a comprehensive study of 50 cities across the UK, ranked by affordability, available housing stock and lifestyle considerations for first-time buyers

Aldermore’s First Time Buyer Appeal Index¹, analysing 50 cities across the UK to understand the best places for first-time buyers, reveals that for the second year running, Glasgow has taken the top-spot.

The Appeal Index looks at 10 indicators across two key pillars – property and lifestyle – that impact first-time buyer desirability.

Aldermore’s First Time Buyer Appeal Index’s top 10 ‘hotspots’:

Ranking	City	Region	Overall Score
1	Glasgow	Scotland	77
2	Dundee	Scotland	71
3	Aberdeen	Scotland	70
4	Manchester	North West	66
5	Liverpool	North West	65
6	Newcastle	North East	62
7	Swansea	Wales	59
8	Derby	East Midlands	58
9	Newport	Wales	58
10	Edinburgh	Scotland	57

[Table of all 50 cities included in notes to editors as well more detailed explanation of scoring system]

Scotland offers the strongest appeal for younger population

Scottish cities continue occupy the top spots in the Appeal Index, offering the strongest opportunities for first time buyers to get their foot onto the property ladder. First time buyers in Scotland are getting over the first hurdle of raising a deposit, more easily than in other cities in the UK, with smaller average deposits to income ratio needed. Additionally, these cities boast enticing lifestyle opportunities, with competitive pay, reasonable commuting times, and a high proportion of bars and restaurants. With an average first-time property price of £158,310 in Glasgow and a projected annual increase of 7% in the coming years, it also provides a good future investment.

Edinburgh fared less well than other Scottish cities in the Index, falling from 5^th place in 2022 to 10^thplace. The city scored well in terms of the lifestyle pillar – with a young population (26% aged between 25-35) and a large graduate workforce (69%) indicating social life and employment opportunities for local FTBs. However, property prices are much higher in Edinburgh (on average £268,562), and in turn, the amount needed for a deposit in the city is higher (£67,224 compared to the average FTB deposit in Glasgow of £32,385). However, good pay, healthy graduate opportunities and plentiful social activities were enough to ensure Edinburgh a place in the top ten.

Manchester climbs into the top 10

Manchester jumped this year from 11^th to 4^th place, meeting a number of lifestyle considerations, from competitive salaries, (£33,784 on average) to promising job prospects. Although the buying price is lower than other cities (£218,503 on average), properties in the city offer good returns, with an annual house price increase of 6.8% projected.

Manchester performs better than their neighbours Liverpool on the lifestyle front, with respective scores of 73 and 60. Despite less promise in this regard, Liverpool still boasts an affordable stock of properties (£163,108 on average) and healthy projected price growth per year (7.2%).

Newcastle (6^th place) continues to score highly on the property pillar with decent affordability and investing opportunities as well as meeting a number of key lifestyle considerations for first time buyers. Although the average purchase price in Newcastle is more affordable (£168,442) than other cities featured in the index, house prices are increasing at a much lower projected rate per annum (4.1%) compared to Swansea (6.7%) and Newport (7.4%)

Wales hold onto their top spots

Welsh cities Swansea and Newport held onto their positions coming in at 7^th and 9^th respectively. Derby has climbed into the top 10 table in 8^th place offering affordable purchasing opportunities but less well on the softer aspects such as life satisfaction, commute times and local nightlife.

The ‘cooler’ spots for first-time buyers

Southern cities in the UK failed make this year’s top 10 for the second year in a row. This was largely due to a lack of affordable property for first-time buyers with Maidstone, Chelmsford and Basildon remaining the least attractive cities. London dropped one place to 43^rd, continuing to sit low in the rankings due to high house prices, unaffordable deposit requirements and its limited potential for house price growth.

Cities in Yorkshire are rising stars, with Wakefield making the highest jump this year from 32^nd place in 2022 to 14^th place. Leeds takes the 13^th spot with Doncaster (26th), Sheffield (27th) and Barnsley (28th) also making the top 50.

Aldermore’s First Time Buyer Appeal Index’s lowest-ranking cities:

Ranking	City	Region	Overall Score
50	Maidstone	South East	22
49	Chelmsford	East	27
48	Basildon	East	28
47	Southend	East	32
46	Bournemouth	South East	33
45	Northampton	East Midlands	39
44	Peterborough	East	39
43	London	London	42
42	Luton	East	42
41	Sunderland	North East	42

Jon Cooper, head of mortgages at Aldermore said: “First-time buyers have had a challenging year, facing higher interest rates and increased market uncertainty. It’s therefore understandable that some people are questioning whether or not to put their homebuying plans on the backburner. However, as we can see, there are still fantastic opportunities available in the UK, with many regions not only offering healthy returns on properties but are also fulfilling key lifestyle considerations, which for some, is just as important in the homebuying search.

“Becoming a home owner is a wonderful step forward in a person’s life, and for many is a rite of passage. Despite the current environment, first time buyers can still realise their homebuying dreams.”

At Aldermore, we know the difficulties first-time buyers face in raising a deposit, so we have complied our top tips to help those looking achieve their homebuying dreams [see notes to editors].

**Ends**

Notes to editors

Aldermore’s First Time Buyer Appeal Index 2023 Top 50 Ranking Table:

Ranking	2023	+/-change	2022 ranking
1	Glasgow	-	1
2	Dundee	-	2
3	Aberdeen	-	3
4	Manchester	+7	11
5	Liverpool	-1	4
6	Newcastle	+1	7
7	Swansea	-1	6
8	Derby	+8	16
9	Newport	+1	10
10	Edinburgh	-5	5
11	Leicester	+1	12
12	Birmingham	+15	27
13	Leeds	-4	9
14	Wakefield	+18	32
15	Southampton	+4	19
16	Stoke	+2	18
17	Nottingham	-	17
18	Cardiff	-4	14
19	Belfast	+9	28
20	Hull	+4	24
21	Telford	+8	29
22	Wolverhampton	-7	15
23	Wigan	-2	21
24	Bristol	+2	26
25	Portsmouth	-12	13
26	Doncaster	+5	31
27	Sheffield	-4	23
28	Barnsley	-8	20
29	Coventry	-21	8
30	Norwich	-8	22
31	Bradford	+9	40
32	Warrington	+3	35
33	Cambridge	-8	25
34	Brighton	-1	33
35	Oxford	+3	38
36	Swindon	+9	45
37	Milton Keynes	+4	41
38	York	-2	36
39	Plymouth	-5	34
40	Reading	-3	37
41	Sunderland	-11	30
42	Luton	+4	46
43	London	-1	42
44	Peterborough	-5	39
45	Northampton	-1	44
46	Bournemouth	+1	47
47	Southend	-4	43
48	Basildon	-	48
49	Chelmsford	-	49
50	Maidstone	-	50

¹Aldermore’s First Time Buyer Appeal Index was designed by Opinium and comprises 10 key indicators across two pillars. The index uses a series of secondary data sources including ONS, Census, NOMIS and other official housing statistics.

Property Pillar indicators:

Average FTB selling price
Average increase in FTB price
FTBs as a share of sales
Average FTB deposit/x average income

Lifestyle Pillar indicators:

Percentage of population aged 25-35
Average commute time
Restaurants and pubs per 10 thousand people
Average life satisfaction
Percentage of workforce graduates
Average full time pay

Aldermore’s Top Tips for saving for a deposit:

Don’t just put aside loose change, try and save a set amount each month – Rather than putting aside only the money you have left over at the end of the month, try to save a set amount regularly and consistently. It’s also worth looking at the typical property prices in the areas you’re interesting in buying. This will help give you an idea of how much of a deposit you’ll need to save and estimate how long it will take to reach this goal.
Assess your living situation – Renting can take a big chunk of your monthly income. If you live alone, consider renting with friends or living in a house-share as this will typically be cheaper than renting a one bedroom property alone. It will also help reduce monthly utility bills, in turn helping you to save more each month. For those who are able to move in with parents or family temporarily, this could be another alternative to renting altogether.
Location is a key – but having realistic expectations of what to expect before you start looking helps reduce wasted time, decide on where you want to live and if you can afford a property in your desired location.
Cut down on unnecessary spending – We all deserve a treat now and again, but unnecessary spending habits may be sabotaging your savings. Small changes over time, such as making your own coffee or lunch a few days a week, can add up over time. It’s also worth reviewing your direct debits and bank statements to identify any automated payments you may have signed up for, which you do not make use of anymore.
Review your savings habits regularly – If you are having difficulty meeting your target amount, reduce your monthly contributions to make it more manageable. If you receive a pay rise, a financial gift or find your monthly outgoings are reduced, consider increasing these contributions to reach your homebuying goal sooner.

For further information contact:

For further information, journalists can contact our PR Team.

For further information about Aldermore, please review our Notes to Editors page.