A major new study has pinpointed the UK's best cities for those trying to purchase their first home, with a Scottish powerhouse securing the number one position for an impressive fourth consecutive year.
The Aldermore First-Time Buyer (FTB) Appeal Index for 2025 has once again crowned Glasgow as the most appealing location for new entrants to the housing market. The comprehensive analysis moves beyond just examining house prices, evaluating a broader range of criteria crucial to young buyers.
What Makes a City Appealing to First-Time Buyers?
The index's strength lies in its holistic approach. While affordability remains key, it also factors in average commute times, the quality of local amenities, job opportunity growth, and the proportion of young residents aged 25 to 35 in the area. This provides a more complete picture of livability and long-term potential.
In Glasgow, the average price for a first-time buyer property stands at £168,828, significantly below the UK average of £269,000. The typical deposit required is £31,856. The city also boasts the highest concentration of 25 to 35-year-olds among all cities analysed, a vibrant local business scene, and a healthy projected annual price growth of 6.8%.
The Northern Powerhouse Rises in the Rankings
This year's index highlights a significant shift, with cities in northern England climbing the list. Liverpool and Newcastle have surged to claim second and third place respectively, displacing some other Scottish cities like Edinburgh, which fell down the order.
Dundee and Aberdeen still performed well, taking fourth and fifth spots, but the trend clearly favours northern urban centres offering better value. Conversely, the least affordable locations remain largely in the South of England, particularly commuter towns and coastal spots near London.
Maidstone, Basildon, Southend, and Chelmsford were found at the very bottom of the affordability table.
Expert Insight and the Path Forward
Jon Cooper, Director of Mortgages at Aldermore, commented on the findings. "For the fourth year running, Glasgow leads the way as the best city for first time buyers, with northern cities continuing to dominate our rankings," he said.
"While affordability challenges remain, particularly across southern England, our research shows there are still pockets of opportunity for those ready to take their first step onto the property ladder."
Cooper also welcomed proposed regulatory changes from the Financial Conduct Authority (FCA), suggesting they could help more first-time buyers and self-employed people. He strongly advised prospective buyers to seek guidance from a mortgage broker to navigate the process efficiently and secure the best possible deal.
The full top ten in Aldermore’s 2025 First-Time Buyer Appeal Index is:
- Glasgow
- Liverpool
- Newcastle
- Dundee
- Aberdeen
- Manchester
- Hull
- Swansea
- Portsmouth
- Derby
The report, released on 20 January 2026, serves as a crucial tool for aspiring homeowners assessing where in the UK their budget and lifestyle aspirations might align best.
