The UK's housing market is evolving, with a subtle shift towards regional cities as the cost of living in London becomes increasingly burdensome for first-time buyers. This trend is decades in the making, driven by rising housing costs and a demand for more affordable options. The top 10 cities for first-time buyers, according to Savills, offer a dynamic jobs market, vibrant neighborhoods, and a range of housing options. These cities scored well on property affordability, rent-to-income ratio, and population growth.
Stoke-on-Trent, the cheapest of the 10 starter cities, boasts an average flat price of £88,448 and an average annual earnings of £35,079. It's well-connected, with easy access to major roads and a short train ride to London and Manchester. The city's ceramics industry and proximity to green spaces make it an attractive option.
Hull, with an average flat price of £91,815 and an average annual earnings of £34,497, offers a great opportunity for first-time buyers. The city's central areas and well-established neighborhoods provide a range of amenities and green spaces. Hull's big employers, including medical tech firm Smith+Nephew and the University of Hull, contribute to its appeal.
Derby, the industrial hub of the East Midlands, has an average flat price of £111,529 and an average annual earnings of £38,532. The city's proximity to London and its affordable housing make it an attractive option. Derby's major employers, such as Rolls-Royce and Alstom, provide a stable job market.
Milton Keynes, Britain's biggest purpose-built new town, has an average flat price of £177,694 and an average annual earnings of £40,919. The city's well-connected location and lower housing costs make it an appealing choice for those working in London, Oxford, and Cambridge.
Liverpool, a Unesco City of Music, offers a cheaper housing market compared to Manchester. The city's central zone and emerging hotspots provide a range of housing options, with studio apartments costing around £800 pcm. Liverpool's cultural scene and growing fintech industry make it an attractive choice.
Plymouth, despite having the slowest population growth, is undergoing significant changes. The city's defense investment plan and major employers, such as Babcock, contribute to its appeal. Plymouth's focus on the water and outdoors, along with its cultural attractions, make it an attractive option for young professionals.
Southampton, one of the UK's greenest cities, offers a range of sporting events and cultural attractions. The city's affordable housing and strong job market, driven by employers like the University of Southampton and the NHS, make it an attractive choice for young professionals.
Cardiff, with an average flat price of £174,944 and an average annual earnings of £36,405, is a popular choice for first-time buyers. The city's regeneration projects and strong job market, driven by insurers and tech companies, make it an attractive option.
Glasgow, with an average flat price of £195,800 and an average annual earnings of £38,874, is a cultural hub with a strong leisure scene. The city's focus on financial services and its status as a European Capital of Culture make it an attractive choice for young professionals.
Norwich, rapidly becoming a key 'starter city', offers a focus on science and the arts. The city's affordable housing and strong job market, driven by its research park and the University of East Anglia, make it an attractive option for graduates and young workers.
