Turbulent times have impacted the property market in recent years, but new data suggests things are finally on the up! Debbie Clark looks at how the tide is turning, and takes a closer look at the locations that have resiliently ridden the waves to become the most popular locations with first time buyers
Research by digital property pack provider, Moverly, has revealed that so far this decade, there has already been a significant increase in the average number of transactions seen across the property market. Moverly analysed the average number of annual UK residential property transactions each decade from 1990 to the present day to gain insight into how the UK property market has evolved through the decades.
The data shows that during the 1990s, a total of 12,935,000 homes were sold across the UK, equating to an average of 1,293,500 transactions for each of the 10 years. This accelerated in the noughties, with 1,405,000 homes sold on average each year, an increase of 8.6% versus the previous decade, despite the market turmoil seen in 2008 as a result of the global financial crisis.
This market crash left its mark with only 11,036,000 homes sold across the UK during the 2010s, sitting 22% below the previous decade. However, as we approach the halfway point of the 2020s, transaction numbers seem to be making a strong recovery.
The UK has seen an estimated 5,337,000 residential transactions so far this decade; equivalent to an average of 1,186,000 per year – a 7.5% increase versus the previous decade.
Gemma Young, Moverly CEO, says, “These positive figures come despite the fact that the property market has had to weather a period of prolonged uncertainty spurred by higher interest rates, and now that we’ve weathered the storm and are heading in the right direction, the market looks set to continue performing well over the coming years.”
At a national level, first time buyers account for around half (49%) of all homes bought with a mortgage, but in the most popular areas for first time buyers that figure jumps as high as 75%. Amanda Bryden, Head of Halifax Mortgages, says, “Deciding when and where to buy your first home is a deeply personal choice. While saving for a deposit and navigating higher interest rates pose a significant challenge for many prospective homeowners, life often intervenes and major milestones such as starting a new job or beginning a family can sway the decision. First time buyers are often more willing to relocate to new areas in pursuit of finding the ideal home within their financial reach. This flexibility opens up a broader range of possibilities and can lead to more affordable housing options.” But where are first time buyers buying in the 2020s? New research by Halifax has revealed Britain’s hottest locations for first time buyers, with Manchester topping the table. The research, based on data from the Halifax House Price Index, analysed the areas of the country (outside of London) where first time buyers account for the biggest proportion of home sales. Popular areas are spread across the country, so what is the appeal of these property hotspots?
MANCHESTER
First time buyers accounted for 75% of all home purchases made with a mortgage last year in Manchester, up from 65% in 2020. The city offers diverse housing stock and very favorable property prices, with an average first time buyer property price of £212,891, around £35,000 below the British average. This, combined with a strong jobs market, excellent transport links, a rich cultural scene and ongoing urban regeneration make it an understandably attractive location.
DARTFORD
FROM £277,000
Copperhouse Green Bellway London’s town centre development comprises studio, one, two, and three bedroom apartments, with balconies and parking available at selected plots. The development has close access to local shops and schools, and its views consist of the local 26-acre Central Park, making it ideal for first time buyers, families and commuters alike. Dartford railway station is only a 10-minute walk away.
bellway.co.uk/new-homes/thames-gateway/copperhouse-green
01322 950 625
HOUGHTON REGIS (LUTON)
FROM £380,995
Linmere Barratt Homes is offering three bedroom homes as part of a wider consortium in Houghton Regis, with over 5,000 homes, schools, parks and a community cafe. The development boasts 90 acres of public open space, 17 play areas for the community, electric car charging points and new community allotments. Located within five minutes of the M1, the nearest railway stations are Leighton Buzzard, Leagrave and Luton Airport Parkway.
barratthomes.co.uk/new-homes/dev000965-barratt-homes-at-linmere
0333 060 8017
SLOUGH
Up from 54% in 2020, first time buyers in Slough, Berkshire, represented 73% of all properties purchased with a mortgage last year as a result of significant investment in regeneration projects in the town, including new residential, retail and leisure developments. The average property price in the town for first time buyers is £322,961, around £75,000 above the British average, but still well below the average of nearby London (£490,235). With excellent rail connections into the capital, including via the Elizabeth Line, it’s an attractive option for commuters and for growing families seeking more space. There is also a strong employment market in the town itself, with the “UK’s Silicon Valley”, along the M4 corridor, bringing high-tech jobs to the area.
CASE STUDY
First time buyers Sebastian, 39, and Joanna, 35, have purchased a two bedroom apartment at Bellway London’s Copperhouse Green development in Dartford after renting in the capital for over 10 years. Sebastian, a head chef, and Joanna, a retail team leader, took advantage of a £13,673 deposit contribution from the housebuilder which, added to their own £19,995 savings, gave them a 10% deposit. “There is no way we could have bought this fabulous apartment without Bellway London giving us a deposit contribution,” says Joanna.
The husband and wife originally came to the UK 11 years ago to work and save for their wedding back home in Poland. “Within a year or so we had saved enough to pay for the wedding. After we got married, we decided to move back to the UK because we loved it so much and thought we could build a nice life there,” says Joanna. When the couple decided they wanted to buy a home, having both secured higher paying jobs, they worked hard to save again. Joanna says, “We saved every penny we could for two years then decided we might have enough to look at buying our own home.” As the couple both work in central London, location was everything. Joanna and Sebastian had heard good things about Dartford so decided to take a day trip. “After a spot of window shopping, we walked to the huge Central Park to relax and on the way out we saw a sign that told us that Bellway was building apartments at Copperhouse Green, just around the corner. We went straight to the development and fell in love with the location and the look of the buildings. We both knew it was the place we wanted to live.” Having now moved in they couldn’t be happier. Joanna’s commute to Oxford Street has remained the same at about one hour and 10 minutes while Sebastian’s journey is now just 45 minutes. “Instead of having a view of the busy Streatham High Road, we look out over the gorgeous Central Park. When I sit out on the balcony of our fifth-floor apartment now I don’t have to block out the sounds of sirens and traffic with headphones because all I hear is birdsong. It’s wonderful.
We actually moved into this apartment – our dream home – on 19 July, which was our 10th wedding anniversary. Living here is the best present we could ever have given ourselves. It’s as if we are meant to be here and we love it.”
SANDWELL
Sandwell, in the West Midlands, comes in third with first time buyers making up 73% of all properties purchased with a mortgage last year, compared to 71% in 2020. Properties here are significantly cheaper than the British average at £179,058, and also around £40,000 below the average for the West Midlands (£221,307). This is another area that has undergone significant economic regeneration and business investment in recent years and it is well-connected by major road networks (including the M5 and M6 motorways) and good rail links. The borough also boasts 1,200 hectares of parks and green spaces, making it particularly popular with young families.
Change is happening. The 2020s are looking positive for both the market as a whole and for first time buyers. Lloyds Banking Group (through Halifax and Lloyds Bank) recently announced First-time Buyer Boost, an improved loan-to-income (LTI) multiple for all eligible first time buyers. The boost allows first timers to borrow up to 5.5 times their household annual income, up from 4.49 times. Based on a household income of £50,000 and a deposit of 10%, this will increase the maximum loan available from around £224,500 to around £275,000 (a 22% increase). Getting on the ladder just got easier, so it’s the perfect time to think about where you want to spend the rest of this decade.
CENTRAL MANCHESTER
L&Q at Victoria Riverside FROM £61,875*
L&Q has launched the first phase of one and two bedroom apartments at its flagship Manchester development in the up-and-coming Red Bank neighbourhood, which forms the first phase of Victoria North. The development will offer residents access to a gym, communal workspace, concierge and podium gardens. Homes offer views of Manchester’s skyline through large windows, with a choice of two contemporary colour palettes to choose from for the kitchen and bathroom. The development is a short walk from Manchester Victoria station, with services to Liverpool in less than 40 minutes and Manchester City airport in 30 minutes.
0161 968 0022
*Based on a 25% share of the full market value of £257,500
SLOUGH
Horlicks Quarter FROM £102,500*
Located on the iconic grounds of the former Horlicks Factory in Slough, Horlicks Quarter is a new collection of 75 high specification one and two bedroom apartments. Facilities include a gym, concierge, cinema room, rooftop garden and co-working space. The kitchen includes integrated appliances and a useful breakfast bar in some apartments and the bedroom has a fitted wardrobe. Slough town centre is eight minutes away where you will find shops, supermarkets, restaurants, cafes and pubs. Slough station, for the Elizabeth Line or National Rail, is a seven-minute walk, and central London can be reached from around 15 minutes.
abrihomes.co.uk/properties/horlicksquarter
0800 145 6663
*Based on a 35% share of the full market value of £290,000
SLOUGH
SNG at Montem FROM £122,000 (based on buying a 40% share)
SNG at Montem is a collection of one and two bedroom apartments provided through Sovereign Network Group (SNG). Each apartment will benefit from a balcony or terrace. Commuters are perfectly placed for access to the capital in under 30 minutes from Slough station. Residents will also be able to access the best amenities that Slough has to offer – it is within easy walking distance of the main shopping centre, a fantastic choice of restaurants, shops and cafes, as well as an ice rink, gym and climbing wall next door to the site.
sovereignliving.org.uk/developments/sng-at-montem
0300 330 0718
READING
L&Q at Bankside Gardens FROM £68,750*
This collection of one and two bedroom homes offers modern living surrounded by 22 acres of open space and parkland. As well as contemporary homes, the development features The Residents’ Club 51, which includes a gym, private cinema and co-working space. Most homes offer a private balcony or terrace, and residents can make use of secure bicycle storage and car parking. Reading Green Park station is three minutes away, with services reaching Reading station in six minutes . lqhomes.com/banksidegardens 0333 242 2045
*Based on a 25% share of the full market value of £275,000
CASE STUDY
Primary school teacher Becky has purchased her first home with a deposit of just £3,500. Becky, 32, is now the proud owner of a 25% share of her one bedroom apartment with L&Q at Bankside Gardens in Reading, purchased for £69,375 (full market value £277,500). Becky was able to take a leisurely approach to the buying process. She explains, “I was living with my parents in Burghfield, which had its perks, but I wanted my own space – a home that was mine, which I could really make my own, where I could relax after a full-on day at work. I was waiting for the right place to come along. I wasn’t really in a rush, I just wanted to find something I really loved.” Her sister bought through shared ownership 15 years ago – and now owns all of her home – so Becky was confident in the scheme’s suitability for her. She kept a close eye on the Share to Buy portal and, in July 2023, came across L&Q at Bankside Gardens.
As soon as Becky’s shared ownership eligibility form was approved, she booked a viewing. “I was shown the show home first, which I thought was beautiful,” she recalls. “There was a six-seater dining table in the kitchen, and it really made me think that if you’re clever with furniture, you can do a lot with a space! When I was shown an empty apartment, I felt really excited about the prospect of decorating it and moving my own furniture in.” Becky was also impressed by the integrated appliances and balcony with views of the lake and surrounding green space. The location was perfect too.
Debbie Clark
Debbie Clark is a freelance writer with a keen interest in property. Graduating from Manchester University with a BA (hons) in Language, Literacy and Communication, she went on to study for a Primary PGCE and embarked on a career in teaching. A move to the country with a young family saw her turn her attention back to writing. Having bought her own first home on a shared ownership scheme, she has personal experience of buying - and selling - new build properties. She also works as Operations Manager for a London estate agents, giving her a solid understanding of the resale market and current trends. She loves to travel but, if time or budgetdon'tallow, will settle for the escapism of a good podcast!
