First-time buyer hotspots and cold spots reveal north-south divide in UK housing market

Average asking prices for typical first-time buyer homes in some parts of Britain have jumped by nearly a fifth over the past year, according to analysis by property website Rightmove. The study, which examined data across Britain but excluded London due to its significantly higher price levels, highlights a clear north-south divide in affordability and demand.

Hotspots in the North

Rightmove identified Bridlington in Yorkshire and St Helens in Merseyside as the top first-time buyer price hotspots, with average asking prices increasing by 18% annually. In Scotland, Falkirk saw a 17% rise, while Hartlepool in the north-east of England experienced a 12% increase. The fastest-growing areas all had average prices below £170,000, underscoring continued demand for more affordable homes.

Colleen Babcock, a property expert at Rightmove, said: “Affordability continues to shape where first-time buyers are looking, and we’re seeing the strongest price growth in areas where homes remain within reach for more people. Lower-cost locations are still seeing strong interest, with competition for homes helping to hold prices up.”

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Coldspots in the South

In contrast, several higher-priced southern markets, including Brighton and Southampton, are seeing average first-time buyer prices ease compared with last year. Exeter recorded the biggest drop, with prices falling by 20% to an average of £201,248. Rightmove said that in more expensive markets, buyers are taking more time and thinking carefully about what they can afford, keeping growth relatively flat.

Most and Least Expensive Areas

St Albans in Hertfordshire is the most expensive area to buy a typical first-time buyer home, at £401,352, while Middlesbrough is the least expensive at £90,929. A first-time buyer could typically purchase four homes in Middlesbrough for the price of one in St Albans. The average asking price across the research for a typical first-time buyer home (two bedrooms or fewer) is £228,048, down by 0.7% annually.

Challenges for Buyers

Nathan Emerson, chief executive of property professionals’ body Propertymark, noted: “These figures show that affordability continues to drive first-time buyer activity, with the strongest price growth concentrated in areas where homeownership remains within reach. While demand remains strong in many northern English and Scottish markets, buyers still face challenges from higher mortgage costs, ongoing living expenses and saving for a deposit.”

Charlotte Harrison, chief executive of homes at Skipton Building Society, added: “The strong house price growth reflects the continued strength of demand in comparatively lower-cost northern markets, where many first-time buyers are prioritising flexibility, value and space. Our latest Skipton Group home affordability index shows average first-time buyer deposits in the North of England equate to around half the level of London, and buyers in the North are also often able to secure larger homes than they require.”