Santander UK reveals the rising neighbourhoods for first-time buyers (FTBs), with top spots including Waverley, Waltham Forest, and Bassetlaw.
It comes as FTBs are moving further away to get onto the property ladder due to lack of suitable properties and affordability constraints - saving an average of £29,000 compared to buying where they lived previously.
Data from Santander’s own customers shows the average distance FTBs move to buy their first home has risen by 23%in the last five years.
Santander has launched a series of videos to help first-time buyers get to know their new neighbourhoods, on its First-time buyer hub.
Santander UK today reveals the top rising neighbourhoods that first-time buyers are choosing to purchase in across the UK, as moving further away from family, friends and familiar places to get onto the property ladder becomes more common.
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.1
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.
The top rising FTB neighbourhoods by region over the last 10 years
Region | Top Rising Neighbourhood | 2013 Rank | 2023 Rank | Ranking Increase | Ave Neighbo-urhood property price (£) 2 |
South East | Waverley | 54 | 29 | +25 | 385,150 |
London | Waltham Forest | 25 | 13 | +12 | 447,678 |
East Midlands | Bassetlaw | 20 | 12 | +8 | 171,000 |
East of England | Harlow | 38 | 30 | +8 | 291,294 |
North West | Knowsley | 30 | 25 | +5 | 186,536 |
Scotland | East Lothian | 23 | 18 | +5 | 213,111 |
West Midlands | Stoke-on-Trent | 6 | 3 | +3 | 147,028 |
South West | City of Plymouth | 10 | 7 | +3 | 191,309 |
Wales | Newport | 8 | 5 | +3 | 200,847 |
North East | Middlesbrough | 11 | 9 | +2 | 141,291 |
Yorkshire and The Humber | Rotherham | 13 | 11 | +2 | 152,634 |
Data from Santander recently revealed that FTBs are increasingly compromising on location to fulfil their dream of owning a home – with two thirds (67%) moving to an area they had never been to before, compared to just over half (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.3
The average distance Santander customers moved to purchase their first home has increased by nearly a quarter (23%) over the last four years.4 And this is particularly true of Londoners, as nearly two-thirds (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 FTB neighbourhoods becoming less popular over the last 10 years
Region | Neighbourhood with biggest drops in FTBs | 2013 Rank | 2023 Rank | Ranking Decrease | Ave Neighbo-urhood property price (£) 2 |
South East | Elmbridge | 13 | 32 | -19 | 470,742 |
South West | Teignbridge | 7 | 17 | -10 | 257,498 |
London | Tower Hamlets | 6 | 16 | -10 | 474,332 |
East Midlands | Lincoln | 9 | 16 | -7 | 166,938 |
East of England | Cambridge | 17 | 24 | -7 | 406,447 |
Scotland | East Dunbartonshire | 19 | 25 | -6 | 235,813 |
North West | Chorley | 25 | 30 | -5 | 181,778 |
West Midlands | Wychavon | 16 | 20 | -4 | 226,462 |
Yorkshire and The Humber | York | 9 | 13 | -4 | 250,998 |
North East | South Tyneside | 9 | 11 | -2 | 127,515 |
Wales | Isle of Anglesey | 20 | 22 | -2 | 177,000 |
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 are here to support them achieve the exciting milestone of purchasing their first home, wherever it may be.”
To find out how Santander is helping first-time buyers to settle in new neighbourhoods, including its new “get to know your neighbourhood in two hours” checklists, visit Santander’s First-Time Buyer Hub. To discover last month’s campaign and how participants got to know their new neighbourhood in just two hours, head to @SantanderUK on Instagram or TikTok.
- Ends -
The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
Notes to Editors
1 Top rising neighbourhoods established using ONS data on the House Price Index between 2013-2023 to estimate the number of first-time buyer sales in each local authority across the UK.
2 Based on Santander’s own data showing the average property price per neighbourhood based on completions in 2023.
3 Further analysis provided of Santander’s own FTB mortgage data to assess the distance between the applicant’s current home and the property they are purchasing.
4 Sentiments on buying a first home established through a survey of 2,000 First-Time Buyers, conducted by Opinium for Santander UK in May 2024.