Lloyds has picked out the top 10 local authority areas outside of London with the biggest percentages of mortgaged first-time buyers
A London commuter town often given the title of being one of the worst places to live in the UK has just been named among the most popular places for first-time buyers to move to outside of London. Mortgage lender Lloyds analysed locations outside London where first-time buyers make up the highest proportion of mortgaged home purchases.
While Manchester came in top with Lloyds for the highest percentages of mortgaged first-time buyers in 2025 with 70.2 per cent, Luton ranked joint third with 69.4%. The average first-time buyer property price in Luton is £251,798 – which is £3,000 below the average first-time buyer price (£254,920) across Britain, according to Lloyds. In comparison the overall average house price in London was £574,514, according to Lloyds Bank data from late 2025.
While the Bedfordshire town has not had the best reputation over the years, its close proximity to London is a strong selling point for first-time buyers looking for somewhere more affordable to set up home and get themselves on the property ladder. It just a 23 minute commute on an East Midlands Railway service between Luton Airport Parkway and St Pancras International, while Thameslink services also run to stations including Farringdon and Blackfriars within 45 minutes.
Property expert Phil Spencer named Luton as one of the best London commuter towns for 2025, in a respectable ninth place and a study by the website Money in 2021 identified Luton as the best commuter town for Gen Z and Millennials.
According to Money: “Considering 10 of the most popular commuter locations near London, the research found that Luton is the best for Gen Z and Millennial commuters. The commute to London is (23 minutes) via public transport, making it easy to get to work, experience nightlife or go shopping.”
A £1.7 billion regeneration scheme is also in the works adding to the appeal of moving to the town. Speaking earlier this month, local Labour councillor James Taylor, who leads the town’s ambitious regeneration scheme, said: “I’m sick of people talking the place down.
“Luton has its problems, sure, but finally we have the investment we need to get it back on its feet. We’ve had 14 years of underinvestment from the Tories. Now we have more than a billion to reinvest in the town.”
The funding Cllr Taylor mentioned is enormous. Luton Council has created a Town Centre Masterplan to direct how the area will transform over the coming 20 to 30 years, adapting to changes in how residents live, socialise, shop and work. Developments are already in progress, with building work visible throughout the town.
At Hat Gardens, the River Lea has been uncovered, creating a venue where the council has hosted year-round activities, including an outdoor cinema showing live sport and films. Building work has also commenced at Power Court, which will become the new ground for Luton Town Football Club. The scheme will feature a 25,000-capacity stadium alongside a hotel, music venue, and additional public areas.
The scheme will also deliver approximately 1,200 new flats, alongside a variety of new shops. In total, around £1.7 billion of public and private funding has been pledged to revive a town that has repeatedly featured on lists – and even topped rankings – of the worst locations to live in the UK.
The local authority says it is addressing criminality. In 2024, it established a Town Centre Task Force, which collaborates with local charities and police to tackle unlawful behaviour. But whether these bold proposals can reverse decades of deterioration and restore pride to a community that feels overlooked is still unclear.
Amanda Bryden, head of mortgages at Lloyds said: “Choosing your first home is a huge moment. Affordability is the number one priority for most first‐time buyers, and we’re seeing more people cast their net wider to find places that match both their lifestyle and their budget.”
Top 10 areas outside of London with biggest percentage of mortgaged first-time buyers in 2025
Lloyds used data from its banking group, which also includes Halifax and Bank of Scotland, to make its calculations. Here are the top 10 local authority areas with the biggest percentages of mortgaged first-time buyers in 2025, according to Lloyds, with the percentage followed by the average first-time buyer house price in 2025 and the cash amount higher or lower than the average for the region:
1. Manchester, 70.2%, £230,090, £38,110
2. Sandwell, 69.7%, £185,235, minus £45,491
=3. Birmingham, 69.4%, £214,825, minus £15,900
=3. Luton, 69.4%, £251,798 minus £59,990
5. Thurrock, 68.2%, £289,819 minus £21,969
6. Leicester/Oadby, 66.9%, £221,663, £2,718
7. Coventry, 66.5%, £193,022, minus £37,703
8. Harlow, 66.1%, £265,156, minus £46,632
9. Stevenage, 65.9%, £286,949, minus £24,838
10. Salford, 65.6%, £201,682, £9,703
Lloyds mortgage expert’s advice for first-time buyers
Here are some tips from Ms Bryden for aspiring first-time buyers:
Do your research
Start by understanding the steps, from an agreement in principle, to mortgage approval to moving day. Free guides and resources can help make the process clearer.
Consider getting advice
Speaking to a mortgage adviser or broker early can help buyers understand what they can afford and what costs to expect, from the deposit to legal fees. Lenders may offer a video appointment to speak to a mortgage expert at a convenient time.
Explore your options
A mortgage expert may be able to show borrowers options they may not have considered and guide them on ways to build up a fund to get onto the property ladder faster. Some buyers may want to consider schemes such as shared ownership or low deposit mortgages. In general, some buyers may be able to access lower mortgage rates by building a bigger deposit.
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