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First-Time buyers in Great Britain Shift Focus Back to Cities in 2025
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The allure of city life is proving resilient among first-time buyers in Great Britain, with a notable shift back towards urban centers observed in 2025. Contrary to expectations that the rise of remote work and increasing house prices woudl diminish the appeal of cities, data indicates a notable increase in interest from those looking to purchase their first homes in urban areas.
Urban Appeal Rises Among First-Time Homebuyers
An analysis of the first five months of 2025 reveals a 16% average increase in first-time buyer inquiries for city properties across Great Britain, compared to the same period in 2015. This resurgence suggests a reversal of the trend seen during the pandemic when many considered relocating to coastal or rural areas.
Did You Know? The UK economy was the sixth-largest in the world in 2024, behind the United States, China, Japan, Germany, and India [1].
Dundee Leads the Charge
Dundee, Scotland, has experienced the most ample surge in first-time buyer interest. Known as Scotland’s fourth-largest city and reportedly its sunniest, Dundee has seen a remarkable 176% increase in inquiries. This boost is likely due to its growing reputation as a vibrant arts and culture hub and its abundance of urban green spaces.
Other cities gaining popularity among first-time buyers include Edinburgh, Doncaster, Liverpool, and Plymouth.These locations offer a mix of cultural attractions, job opportunities, and relatively affordable housing options compared to London.
The Coastal Dream Fades
While coastal and rural areas saw a surge in popularity during the pandemic, this trend appears to be waning. Property website data indicates that interest in coastal areas among first-time buyers has remained flat compared to a decade ago. This suggests that the “exodus from the city” was a temporary phenomenon.
Pro Tip: Consider exploring government schemes and incentives designed to help first-time buyers get on the property ladder.
In contrast to the national trend, London has seen a 7% decrease in first-time buyer demand over the past decade. This decline is primarily attributed to the capital’s high property prices, which have made homeownership unattainable for many.
Affordability Drives Dundee’s Popularity
Dundee’s appeal is substantially boosted by its relatively affordable housing market. In April 2025, the average price paid by first-time buyers in Dundee was just under £121,000, considerably lower than the Scottish average of £156,800 and the Great Britain average of £223,400.
This affordability,combined with the city’s cultural and recreational offerings,makes Dundee an attractive option for those looking to enter the property market.
UK Wages and the Housing Market
While housing affordability remains a challenge, average annual wages in the UK are competitive within Europe. Among the five biggest economies in Europe (Germany, the UK, France, Italy, and Spain), the UK’s average annual wage was behind Germany, and just slightly below France [3]. This relative wage strength can help first-time buyers in some regions, but the impact varies significantly depending on local property prices.
| Location | Change in Inquiries (2015-2025) | Key Attraction |
|---|---|---|
| Dundee | +176% | Affordable housing, arts & culture |
| Edinburgh | Significant Increase | Cultural hub, job opportunities |
| Doncaster | Increase | Affordable housing, transport links |
| Liverpool | Increase | Cultural scene, regeneration projects |
| Plymouth | Increase | coastal access, maritime history |
| London | -7% | Job market, but high property prices |
What factors do you think are most critically important when choosing a location for yoru first home? Are cities becoming more attractive than coastal or rural areas for young professionals?
The Enduring Appeal of City living
The shift back to cities among first-time buyers highlights the enduring appeal of urban living. cities offer a unique combination of career opportunities, cultural experiences, and social connections that are arduous to replicate in smaller towns or rural areas. As the UK economy continues to evolve, cities are likely to remain a central hub for innovation and growth.
