Slough and Reading are among the nation's hotspots for first-time buyers, according to an analysis from a major bank.

Halifax looked at mortgage approval data to calculate the findings, looking at the areas of Britain, excluding London, where first-time buyers account for the biggest proportions of home sales.

Slough was second on Halifax’s list, with first-time buyers representing 73% of all properties purchased with a mortgage last year, up from 54% in 2020. 

The average property price in the town for first-time buyers is £322,961.

While this is around £75,000 above the average across Britain, it is well below the average price tag in nearby London (£490,235).

With good rail connections into London, including via the Elizabeth line, Slough is an attractive option for professionals looking to commute, and for growing families after more space outside of the capital, Halifax said.

It added that the area is also fast becoming a hub for big data centres.

Reading was fifth on the list, as first-time buyers made up 72% of all properties. 

The average property price in the town for first-time buyers is £302,616.

Halifax looked at mortgage approval data to calculate the findings, looking at the areas of Britain, excluding London, where first-time buyers account for the biggest proportions of home sales.

Manchester was found to be Britain’s top first-time buyer hotspot outside London. 

Halifax estimated that in Manchester, first-time buyers accounted for three-quarters (75%) of home purchases with a mortgage last year, up from just under two-thirds (65%) in 2020.

Amanda Bryden, head of Halifax Mortgages, said: “Deciding when and where to buy your first home is a deeply personal choice. While saving for a deposit and navigating higher interest rates pose a significant challenge for many prospective homeowners, life often intervenes and major milestones such as starting a new job or beginning a family can sway the decision.

“First-time buyers are often more willing to relocate to new areas in pursuit of finding the ideal home within their financial reach. This flexibility opens up a broader range of possibilities and can lead to more affordable housing options.”

Halifax’s calculations excluded cash buyers. London was also excluded when looking for Britain’s biggest first-time buyer hotspots due to its distinct market dynamics, notably significantly higher property prices compared with elsewhere in Britain, the bank said.

Here are Britain’s top first-time buyer hotspots, with the estimated percentage of first-time buyers among all mortgaged buyers in 2023, followed by the average first-time buyer house price last year, according to Halifax:

1. Manchester, North West, 75%, £212,891

2. Slough, South East, 73%, £322,961

3. Sandwell, West Midlands, 73%, £179,058

4. Leicester/Oadby, East Midlands, 72%, £218,900

5. Reading, South East, 72%, £302,616

6. Thurrock, Eastern England, 72%, £286,391

7. Dartford, South East, 71%, £314,090

8. Knowsley, North West, 71%, £157,139

9. Wolverhampton, West Midlands, 70%, £172,554

10. Luton, Eastern England, 70%, £245,207

Britain average (excluding London), 49%, £247,862