Portsmouth ranks 27th out of 70 most expensive UK cities and boroughs for first-time buyers in 2025, new Gov. study finds

A new study sheds light on exactly where new buyers are feeling the biggest pinch, revealing the cities and boroughs where purchasing a first home now costs the most.

The study was conducted by mortgage researchers at Mortgage Lane, who set out to identify the UK areas where first-time buyers face the highest average purchase prices. The study analysed 70 major cities and large urban areas across the UK, focusing specifically on the price paid by first-time buyers rather than overall property averages, which can be skewed by luxury homes and long-term ownership.

To ensure accuracy, Mortgage Lane sourced its data from the Office for National Statistics (ONS) alongside up-to-date figures from local property listings. This combination allowed the study to reflect both official transaction data and current market conditions, giving a realistic snapshot of what first-time buyers are actually paying today. Cities were ranked based on the average purchase price of a first home, with equal weighting applied to each dataset to maintain consistency across locations. Note: London refers to the average first-time buyer price across all boroughs.

Portsmouth ranks 27th on the list of the most expensive UK areas for first-time buyers, with an average purchase price of £228,405. While it sits below many larger cities, the figure still shows that buying a first home in popular coastal and naval cities comes with a notable price tag.

Meanwhile, Westminster tops the ranking as the most expensive place in the UK for first-time buyers in 2025, with an average purchase price of £850,027. It is followed by London overall in second place, where first-time buyers are paying around £728,555 on average. Archway ranks third at £657,500, while Islington comes fourth, with typical first homes costing £618,108, underlining just how steep the entry point remains across large parts of the capital.

Outside central London, Cambridge takes fifth place with an average first-time buyer price of £404,438, followed by Oxford in sixth at £387,602. Brighton ranks seventh, where new buyers face average prices of £379,013, before the list moves further into outer London. Sutton places eighth at £351,924, Bexley ninth at £348,733, and Croydon rounds out the top ten with an average price of £329,993.

At the other end of the scale, Burnley ranks as the least expensive area for first-time buyers, with an average price of just £91,106. Other affordable locations include Aberdeen, Middlesbrough, Sunderland, Blackpool, and Kingston upon Hull, where average first-time buyer prices range from around £114,000 to under £120,000, highlighting the stark regional divide in UK housing affordability.

Joseph Lane, mortgage expert at Mortgage Lane, says the findings reflect the growing challenges faced by first-time buyers across the country.

“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 explains that location continues to play a major role in 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 adds that while cheaper areas do exist, they may not always align with buyers’ work or family needs. “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.”

Full list from most expensive to least expensive UK areas in 2025: