The 10 most popular locations for starters on the housing market have been announced: do you live in one of the hotspots?

Research by Halifax has revealed that Manchester is now the most popular location for first-time home buyers outside London.

The mortgage lender analysed areas of the country outside London where first-time home buyers make up the largest share of house sales.

According to Halifax, nationally, 49 percent of all homes purchased with a mortgage last year were to first-time buyers.

In Manchester, however, Halifax found that three-quarters of all home purchases with a mortgage were made for the first time.

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The city is known for its young and lively population, nice bars, cafes and restaurants.

According to a study, the city has a student population of over 100,000 people. About half of them choose to stay in the city after graduating. Only London has a higher retention rate.

A strong labour market, good transport connections, a rich cultural offering and continuous urban renewal make it an attractive location for many starters.

The city has undergone a veritable transformation over the past two decades, with scores of gleaming 30- to 60-storey apartment blocks now dominating the skyline, many equipped with swimming pools, gyms and underground parking.

But besides being a fun and trendy place to live, it also offers many affordable homes, according to Halifax.

The average price for a first home in Manchester is £212,891, which is around £35,000 lower than the UK average.

The city also offers a choice between modern city centre apartments and traditional terraced houses in the suburbs, so there is something for everyone and every budget.

Nick Stanton, area support manager at estate agents Bridgfords in Manchester, said: ‘We have recorded around a fifth more first home buyers than last year, which is positive. It seems that every house that comes onto the market ’empty’ is taken by a new homeowner.

‘Manchester has everything a first-time buyer needs. There are plenty of affordable and immediately available apartments and houses, and access to the city has never been easier and will continue to improve.

‘Manchester is a shining example of a vibrant, ambitious, multicultural and exciting city. Demand for it has never been greater.’

Manchester has also experienced significant economic growth and business investment in recent years, creating new jobs.

Andrew White of commercial real estate firm Colliers said: ‘We have seen many large companies and government bodies move their headquarters to the city (Manchester) over the last five years, such as JP Morgan, Octopus Energy and Rolls Royce. This has obviously led to increased demand for housing and a significant increase in house prices in the city.’

The other hotspots for first-time home buyers

Despite a housing market marked by high house prices and higher borrowing costs in recent years, first-time homebuyer hotspots are proving resilient, with a number of factors determining their popularity.

Slough is the second most popular location outside London for first-time home buyers, accounting for 73 per cent of all homes purchased in Slough.

In recent years, much has been invested in renewal projects in the city, including new developments in housing, shops and recreation.

According to Halifax, the combination of affordable prices, good transport links and employment opportunities is what makes Slough so popular.

The average house price in the city for first-time home buyers is £322,961. That’s around £75,000 above the UK average, but still significantly lower than the average for nearby London (£490,235).

There are excellent rail links to London, including the Elizabeth line, and the city is just 10 miles from Heathrow.

It is therefore an attractive option for professionals who want to commute and for families looking for more space outside the capital.

There is also a strong labour market in the city itself. It forms part of what is sometimes called the ‘British Silicon Valley’ along the M4 corridor and is fast becoming a hub for major data centres, bringing high-tech jobs to the area.

The third most popular location is Sandwell in the West Midlands, where first-time buyers bought a home, accounting for 73 per cent of all homes bought with a mortgage last year.

Houses in Sandwell are significantly cheaper than the UK average at £179,058, and also around £40,000 lower than the West Midlands average (£221,307).

This part of the Black Country is well served by major roads including the M5 and M6 motorways, and has good rail links to Birmingham and Wolverhampton, making it an ideal location for commuters.

Sandwell is another area that has seen significant economic revival and business investment in recent years.

The area also has 1,200 hectares of parks and green spaces, making it particularly popular with young families.

Amanda Bryden, head of mortgages at Halifax, said: ‘First-time home buyers are often more willing to move to a new area to find the ideal home that suits their financial capabilities.

‘This flexibility opens up a wider range of possibilities and can lead to more affordable housing options.

‘Buying your own home is still one of the best long-term financial decisions you can make. There are several locations in the UK that stand out for their appeal to first-time homebuyers.

‘Manchester in particular, with its diverse housing styles and vibrant cultural offering, has become a magnet for people taking their first steps on the path to home buying.’