For many young professionals, the old path into homeownership has become harder to follow. A decade ago, graduates often began in London, rented with housemates and then moved on to a first purchase. But rising housing costs in the capital are prompting more people to look elsewhere, with some choosing regional cities or university towns where buying is more realistic.
According to research from Savills, shared exclusively with Guardian Money, the strongest places for first-time buyers are not just the cheapest markets. The estate agent’s ranking also factors in the balance between rents and incomes, the relationship between apartment prices and earnings, and evidence that people are moving there. The report points to cities with active labour markets, growing populations and neighbourhoods that appeal to younger workers saving for a deposit.
Why Stoke-on-Trent tops the list
Stoke-on-Trent comes out in first place, helped by the best flat price-to-income ratio among the 10 cities. Savills puts the average flat price there at £88,448, with average annual earnings of £35,079 and average monthly rent for a one-bedroom flat at £664. The city is also described as the cheapest of the 10 starter locations in the ranking. Local estate agent Joe Shenton says many students from the University of Staffordshire or Keele University rent nearby before moving to outer areas such as Trentham, where three-bedroom semis can begin at £250,000 for buyers skipping the flat stage.
The report also highlights Stoke’s transport links and access to outdoor space. It is connected to the A500, A50 and M6, and the fastest train to London takes less than an hour and a half. Manchester is about 35 minutes away by train, while the Peak District is around half an hour’s drive. Shenton also points to nearby towns such as Newcastle-under-Lyme and Leek, as well as Kidsgrove, which offers a quick commute into Cheshire’s jobs market. The report says businesses in and around Stoke include JCB.
More broadly, the findings reflect a gradual shift in where young buyers are willing to build their lives. Frances McDonald, research director at Savills, says graduates are increasingly weighing housing costs alongside career prospects. Maurice Lange of the Centre for Cities says London remains dominant, but its pull has weakened slightly because the city has become harder to enter and stay in, given long-term demand and limited housebuilding. The result, according to the report, is a growing appeal for cities that combine affordability with jobs, transport and lifestyle advantages.
Source: theguardian.com
