Scotland dominates best first-time buyer hotspots

Relentless house price growth since the pandemic has shelved – or badly delayed – the prospect of homeownership for a generation of young people.

The odds have always been stacked against young buyers, but getting on the property ladder has never been harder, according to new data from the Office for National Statistics. Homes in England now cost 8.7 times the average income.

In certain urban hotspots across the UK, however, first- time buyers still have a fighting chance of purchasing their first home, despite fierce competition from landlords and older, richer buyers.

And buying in an affordable area does not mean you have to compromise on quality of life. Aldermore Bank looked into the best cities for first- time buyers, for both value for money and a great lifestyle, and found that four of the UK’s top five cities for first-time buyers are in Scotland.

To find the best urban hubs, Aldermore used a metric ranking average prices paid by first- time buyers, average value growth and the share of first- timer sales in the city. It also analysed commute times, average pay, how many restaurants and pubs were in the city and overall life satisfaction.

Unsurprisingly, London, with the most expensive property market in the UK, does not feature on the list. In fact, none of the top ten cities for firsttime buyers is within 100 miles of the capital. The closest to the capital is the West Midlands city of Coventry which was ranked at number eight. Here are the top five.

Glasgow once had a reputation as a city in decline, but has since metamorphosed into one of Scotland’s most indemand locations.

The port city prides itself on its rich culture; it was voted one of the first European Capitals of Culture in 1990, and hosted the Commonwealth Games in 2014. Residents have good rail, road and air links to Edinburgh and the rest of the UK and the vast Loch Lomond & The Trossachs National Park on their doorstep.

Glasgow ranked as the best city for first-time buyers, according to Aldermore, making up more than two thirds of sales. Those purchasing for the first time paid on average £141,644 – compared to a national average for all buyers of £283,000. Average first-time buyer house prices in the area climb 6.5pc each year, so once on the ladder homeowners can expect capital growth.

Graduates make up more than half of the workforce in Glasgow and the average salary is £32,604, higher than the national average.

Lisa Pitchers of estate agency Rettie said the first-time market in the city was “thriving”. Ms Pitchers said: “Twobedroom flats are really in demand with first- time buyer couples at the moment. Renovated tenement flats – in sandstone buildings three or four storeys tall with high ceilings – are also really popular.

“Gentrified areas like Dennistoun, in the east end of the city, are the most popular with first-time buyers. They’ve got a thriving coffee culture, good bars and delis.”

DUNDEE

The coastal city of Dundee, in eastern Scotland, has the cheapest housing for first-time buyers in Aldermore’s top five hotspots. Those purchasing for the first time typically pay £118,839, although capacity for price growth is lower than in Glasgow, at 3.2pc. Buyers need a little more than £25,000 to pay an average deposit in the city and 59pc of sales involve first-time buyers.

Dundee has a population of roughly 150,000 and almost a quarter are aged between 25 to 35. Graduates make up 45pc of the workforce, although an average salary of £29,900 means career prospects can be limited.

ABERDEEN

The “Granite City” ranked as the third most desirable for first-time buyers in the UK. Located on the north-east coast of Scotland, Aberdeen gained its nickname because of the vast amount of granite carved from surrounding quarries to build much of the city in the 18th and 19th centuries.

Today, first-time buyers can purchase in Aberdeen for an average of £121,839 and the younger generation make up 60pc of sales in the city.

They would need roughly £26,000 for a deposit, but long-term investment prospects are dubious. First-time buyer house prices fell by 3.9pc in the past year, according to Aldermore.

The city is sandwiched between the North Sea and the rolling hills, lochs and mountains of Aberdeenshire. It is also steeped in history; the city has been home to more than 260 castles.

LIVERPOOL

Liverpool is the only location outside Scotland to feature in the top five cities for first-time buyers.

The younger generation has flocked there – or stayed in the city after university – in search of a promising work- life balance, as well as more affordable property.

First-time buyers account for half of purchasers in the city and need an average of £27,500 to secure a deposit.

The typical property for the younger demographic costs £141,815 and has grown by 6pc over the past year.

Workers in Liverpool earn an average of just more than £30,000 a year and 47pc of the workforce is made up of graduates, many from the city’s seven universities.

EDINBURGH

Edinburgh is the fourth Scottish city ranked in the top five for first- time buyers in the UK. Famous for its cultural festivals, the Royal Mile and even a knighted penguin, millions of visitors flock to the city each year. Residents enjoy the same allure, with Edinburgh recording the highest life satisfaction score in the country and high salaries, according to Aldermore.

But the city’s popularity means buyers must pay more to get on the ladder. First-time purchasers must save an average deposit of £63,000 to buy a typical first property at £240,600. Despite the higher prices, more than half of property transactions in Edinburgh are to first-time buyers. Rachel Mortimer