First-time buyers are moving further away to secure a spot on the property ladder due to a lack of suitable properties and affordability constraints.
Newly released market insight from Santander UK today has highlighted the top rising neighbourhoods that first-time buyers are choosing to purchase in across the UK.
Using data from the last 10 years (2013-2023) Santander has analysed which neighbourhoods have seen the largest increase in the number of first-time buyer purchases over that time – and which have seen the biggest drops.
Waverley in the South East and Waltham Forest in Greater London have topped the chart for the greatest increase in first-time buyer sales, reflecting data that shows one in four (26%) Londoners are moving out of the capital to get onto the property ladder. Other neighbourhoods with the largest increases in first-time buyer popularity over the last 10 years include Bassetlaw, Knowsley and East Lothian, Scotland.
Locations
Data from Santander recently revealed that FTBs are increasingly compromising on location to fulfil their dream of owning a home – with 67% moving to an area they had never been to before, compared to 51% of those who bought more than five years ago.
A lack of suitable properties and affordability constraints are the primary reasons first-time buyers are increasingly moving to new neighbourhoods they had not previously considered. Those who made the move benefitted financially – saving an average of £29,000 in the last two years, compared to if they had bought a property in the neighbourhood where they previously lived.
The average distance Santander customers moved to purchase their first home has increased by 23% over the last four years. This is particularly true of Londoners, as 63% are having to move further away from family and friends to get on the property ladder – more than in any other region.
Santander has also revealed which neighbourhoods have seen the biggest drops in first-time purchases, as first-time buyers react to changes in the housing market. The biggest decline was seen in Elmbridge in the South East, with Tower Hamlets and Teignbridge tied in second place.
The data shows that London has become the least popular area with first-time buyers in the last 10 years, as the number of first-time purchases has dropped nearly 80% during that period.
Graham Sellar, Head of Mortgage Development at Santander, commented: “Our latest data shows that first-time buyers are increasingly looking to purchase in neighbourhoods where they previously might not have considered - or even heard of.
“Those neighbourhoods which have seen the largest drop in FTB purchases, such as Teignbridge, also tell a story, as it becomes clear that location has become the number one compromise for many looking for their first home. As first-time buyers explore these alternative neighbourhoods, we want to reassure our customers that Santander is here to support them achieve the exciting milestone of purchasing their first home, wherever it may be.”