Aldermore Bank have launched their 2023 “Appeal Index” to evaluate which cities are best for first time buyers. It evaluates cities across the UK using 10 indicators split between two main categories: property and lifestyle.
In an impressive show of consistency, Scottish cities, particularly Glasgow, have maintained their top positions on the Appeal Index. They’ve become the prime locales for first-time buyers, thanks to their relatively affordable housing and vibrant cultural scenes.
Easier Start in Scotland
First-time buyers in Scotland generally face a lower entry barrier compared to their counterparts in other UK regions. This is largely due to the smaller average deposit-to-income ratio required, making the initial hurdle of amassing a deposit somewhat easier to overcome.
More than Just Affordable Housing
But it’s not all about the money. Scottish cities, especially Glasgow, are rich in lifestyle perks, offering a wealth of bars, restaurants, and reasonable commuting times, coupled with competitive salaries. These cities aren’t just places to live; they’re communities to thrive in. And with the average property price in Glasgow sitting at £158,310 and a projected annual increase of 7%, first-time buyers can enjoy a life enriched by culture and opportunity, all while making a smart investment for the future.
However, it’s important to note that not all Scottish cities are created equal. Edinburgh, for example, boasts a robust social scene and a thriving young workforce but falls behind in property affordability. With higher average property prices (£268,562) and consequently steeper deposit requirements (£67,224), it’s a tougher market to enter. Yet, its vibrant lifestyle and strong job market keep it in the top ten, proving that the property value is just one piece of the puzzle.
Manchester’s Rising Star
Making significant strides, Manchester has leapt up to 4th place in the Appeal Index. This city has become increasingly attractive to first-time buyers, presenting a well-rounded package of reasonable property prices (£218,503 on average), promising job prospects, and competitive average salaries (£33,784).
Investing for the Future
Manchester stands strong with a projected annual house price increase of 6.8%, showcasing its potential as a sound investment for the future. While its lifestyle score outperforms nearby Liverpool, the latter city still holds its own with affordable property options and a healthy projected price growth of 7.2% per year.
Newcastle and Wales: Holding Strong
Newcastle and Welsh cities like Swansea and Newport continue to be strong contenders. They score highly on property affordability and investment potential while also ticking crucial lifestyle boxes for first-time buyers.
However, it’s crucial to note the variation in property price growth. For instance, while Newcastle boasts more affordable average purchase prices (£168,442), its annual price growth projection stands at a modest 4.1%, somewhat lower than Swansea’s 6.7% and Newport’s impressive 7.4%.
Challenges Down South
In contrast, southern cities are noticeably absent from the top 10, with places like Maidstone, Chelmsford, and Basildon falling behind due to the sheer inaccessibility of property options for first-time buyers. London continues its low trend owing to its notoriously high house prices, substantial deposit requirements, and limited house price growth potential.
The Rising Stars of Yorkshire
Yet, there’s a silver lining: Yorkshire cities are emerging as dark horses, with Wakefield, Leeds, Doncaster, Sheffield, and Barnsley all climbing the ranks, thanks to their improving conditions for first-time buyers.
A Word from the Expert
Jon Cooper of Aldermore summarizes this sentiment perfectly, acknowledging the hurdles first-time buyers have faced, especially in the wake of higher interest rates and prevalent market uncertainties. Despite these challenges, he emphasizes the wealth of opportunities still present. The key lies in balancing financial considerations with lifestyle needs, a combination that is realistically attainable in the current UK property market.
“Becoming a homeowner is a significant milestone,” he remarks, and despite the somewhat turbulent environment, the dream of owning a home remains very much alive for first-time buyers in the UK.