UK’s Costliest Cities for First-Time Buyers Revealed for 2025

A new report highlights where first-time buyers in the UK face the highest entry costs, showing which cities and boroughs now demand the biggest financial commitment to get on the property ladder.

The study was carried out by mortgage analysts at Mortgage Lane. Researchers examined 70 major cities and large urban areas across the UK, focusing on prices paid by first-time buyers rather than overall averages, which often reflect long-term owners and high-value properties.

To produce accurate results, the team combined official data from the Office for National Statistics with current figures from local property listings. This approach captured both confirmed transactions and present market conditions. Each city was ranked by the average price paid for a first home, with equal weight given to both data sources to ensure fair comparison. London figures reflect the average across all boroughs.

Westminster ranks as the most expensive place in the UK for first-time buyers in 2025. The average price of a first home there now stands at £850,027. This places Westminster far ahead of all other areas and beyond reach for most buyers without substantial financial support.

London as a whole takes second place. First-time buyers across the capital pay an average of £728,555. While below Westminster’s level, this figure underlines how costly entry-level homes remain compared with the rest of the country.

Archway comes third, with first-time buyers paying an average of £657,500. Once viewed as more affordable, the area has seen sustained demand in recent years, which has driven prices higher.

Islington ranks fourth, with an average first-time buyer price of £618,108. The borough’s popularity stems from its transport links, proximity to central London, and mix of older and newer homes, all of which keep demand high.

Cambridge places fifth at £404,438. While far cheaper than inner London, it remains one of the most expensive places outside the capital. Strong demand linked to education, research, and technology continues to limit affordability.

Oxford follows in sixth place, with first-time buyers paying around £387,602. Academic reputation, strong employment, and rail links to London support demand, while limited housing supply keeps prices high.

Brighton ranks seventh, with an average first-time buyer price of £379,013. The city attracts buyers seeking coastal living combined with strong transport and urban amenities.

Sutton places eighth at £351,924. Although traditionally seen as more affordable within Greater London, prices have continued to rise.

Bexley ranks ninth, with first-time buyers paying £348,733 on average. Its mix of suburban housing and commuter access keeps demand steady.

Croydon completes the top ten, with an average first-time buyer price of £329,993. Often considered a lower-cost option within London, the borough’s ranking reflects how far prices have increased.

At the opposite end of the scale, Burnley is the least expensive area for first-time buyers, with an average price of £91,106. Other lower-cost locations include Aberdeen, Middlesbrough, Sunderland, Blackpool, and Kingston upon Hull. In these areas, first-time buyer prices range from about £114,000 to under £120,000, showing a clear regional divide.

Joseph Lane, mortgage expert at Mortgage Lane, said the data reflects growing pressure on new buyers.

“House prices have remained high despite changes in interest rates, and for many buyers, saving for a deposit is now the biggest hurdle. In areas like London and the South East, prices have simply run ahead of wages for years.”

He said location continues to shape affordability. “Places with strong job markets, good transport links, and desirable lifestyles naturally attract more demand. When supply doesn’t keep up, prices rise quickly, and first-time buyers are often the ones who feel that pressure most.”

Joseph added that lower-cost areas may not suit everyone. “Not everyone can relocate to more affordable regions, especially if their job ties them to certain cities. That’s why understanding local markets and exploring schemes designed to support first-time buyers is more important than ever in today’s housing landscape.”