Aldermore’s First-Time Buyer Appeal Index analysed around 50 cities across the UK and looked at 10 indicators across two pillars – property and lifestyle – to assess first-time buyer desirability.
Glasgow, the report said, saw strong affordability, with an average first-time buyer property price of £168,828 and an average deposit of £31,856.
The report added that the projected annual price growth was 6.8%, presenting a solid investment return for first-time buyers.
On the lifestyle side, it had the highest proportion of 25-35-year-olds among all the cities surveyed.
It also has a strong skilled health worker base, strong local business base and growing job opportunities, Aldermore said.
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The report said other Scottish cities, which were high on the list last year, have fallen down the rankings, with examples including Dundee, Aberdeen and Edinburgh.
Scotland currently makes up three of the top 10 cities.
Northern cities climb up the FTB ranks
Aldermore said Northern cities had risen up the rankings, with Liverpool and Newcastle taking the second and third slots respectively.
The report said Liverpool and Newcastle have risen up the rankings due to a “combination of affordability, lower first-home prices, and realistic deposit-to-income ratios”.
Looking at Liverpool, the property pillar score soared to 88 out of 100, an 18-point rise on last year and the biggest improvement of any UK city measured.
The average selling price now stands at £161,525, an increase of 6.9% year-on-year, with strong demand reflected in a sharp rise in the share of first-time buyers in the city, at 69%.
On the lifestyle pillar side, Liverpool performed well, with an average commute time of just 19 minutes and a healthy mix of local amenities within easy reach of each property.
Newcastle also reported long-term house price growth of 5.1% per year, helping it rise up the ranks.
Other Northern cities in the top 10 include Manchester at sixth.
| Ranking | City | Region | Overall score |
| 1 | Glasgow | Scotland | 76 |
| 2 | Liverpool | North West | 70 |
| 3 | Newcastle | North East | 68 |
| 4 | Dundee | Scotland | 68 |
| 5 | Aberdeen | Scotland | 67 |
| 6 | Manchester | North West | 65 |
| 7 | Hull | Yorkshire | 63 |
| 8 | Swansea | Wales | 59 |
| 9 | Portsmouth | South East | 59 |
| 10 | Derby | East Midlands | 56 |
Sunderland, Bradford and Sheffield report biggest jumps in FTB ranking
Sheffield, which came 15th this year, had the biggest jump this year at 21 places, which was attributed to scoring well on the property pillar and attracting 63% of first-time buyers as a share of total buyers.
The city also offered a steady annual house growth of 5.9%, and with a lower average deposit of £33,925, getting onto the property ladder here is more achievable than most other cities.
Sunderland and Bradford came 17th and 26th respectively, climbing 17 places year-on-year, partially due to attractive asking prices for properties, which scored well in the property pillar.
However, neither city performed as well on the lifestyle pillar, with lower average pay compared to other cities alongside Bradford’s limited choice of local amenities.
Southern commuter towns and coastal spots remain least affordable
On the other end of the spectrum, Maidstone, Basildon, Southend, Chelmsford, and Bournemouth were ranked as the least affordable cities. The first four were unchanged from last year.
The report noted that the list is “dominated” by Southern commuter towns and coastal locations, adding that they are “held back by ongoing challenges around affordability”.
The list mainly consists of those in the South and East, including London, with only one city from the North at this end of the spectrum – York took 41st position with an overall score of 41.
London rose slightly to 42nd place, but remains well into the lower half of the index, as affordability in the capital “remains acutely high”, Aldermore said.
| Ranking | City | Region | Overall Score |
| 50 | Maidstone | South East | 25 |
| 49 | Basildon | East | 28 |
| 48 | Southend | East | 28 |
| 47 | Chelmsford | East | 33 |
| 46 | Bournemouth | South West | 33 |
| 45 | Peterborough | East | 38 |
| 44 | Cambridge | East | 39 |
| 43 | Brighton | South East | 40 |
| 42 | London | London | 41 |
| 41 | York | Yorkshire | 41 |
Jon Cooper, director of mortgages at Aldermore, said: “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. 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.
“Aldermore welcomes the FCA’s recent announcement on proposed UK mortgage rule changes, which should help more first-time buyers and the self-employed to get a step-up onto the housing ladder.
“It’s well worth first-time buyers engaging a broker to help them throughout this journey. A broker will always have your back and strive to find you the right deal at the best possible price, and their expertise will only save time and remove stress from the entire process.”
