By Fiona Callingham Rory Poulter
A riverside city has been named the top destination for first-time buyers in Scotland, beating out Edinburgh and Glasgow. The latest data shows first-time buyers are now heading to cities in increasing numbers, with a 16 per cent rise in demand seen over the last 10 years, even as they turn their backs on seaside towns.
As part of this, Dundee has witnessed an astonishing 176 per cent boost in interest from first-timers since 2015, according to experts at Rightmove.
Positioned along the River Tay shores, Dundee has become a hotspot for youthful purchasers, due to a boom in regeneration, affordable house prices and a vibrant cultural scene. Estate agent Kyle Anderson, from McIntyre Properties, told This Is Money : “This is a trend we have seen in recent years, given the level of investment and development in the city it has become a desirable place to live in many areas, but also remains relatively affordable compared to the rest of the country.
“Many opt for the West End, as there are many traditional flats in this area which are close to the city centre. Others may go for some of the readily available former local authority houses a little further from the city centre as they are well-sized for couples, small families at a very affordable price point.”
As reported by the Daily Record, Dundee tops the list, but Edinburgh isn’t far behind, showing an impressive 91 per cent spike in the same demographic, tailed by Doncaster with 74 per cent, Liverpool at 73 per cent, and Plymouth at 71 per cent. In stark contrast, London witnessed a seven per cent decrease in such demand due largely to its steep average housing costs.
Rightmove’s property expert, Colleen Babcock, said she has observed significant shifts in the housing market over the past decade. “We’ve seen a number of changes to the property market over the last ten years,” she commented.
“Perhaps most notably is during the pandemic, when many people temporarily left cities and looked to the coast or countryside. Comparing where we are now versus a decade ago, it looks like there’s even more appeal from potential first-time buyers to live in cities, though the data does show that it can vary quite widely from city to city, and it will also depend how first-time buyer-friendly a particular location is in terms of the type of homes that are available for sale.
“Coastal areas haven’t seen the same level of growth as cities from this type of buyer, and again it may be partly due to the availability of suitable homes in these areas for first-time buyers as well as affordability.”
This signifies a shift back from the pandemic-driven trend where many aspired for coastal abodes. In the year 2020, locales such as Port Isaac in Cornwall and Canford Cliffs in Dorset saw a frenzy of home-buying activity. However, looking at a decade’s span, the allure for prime coastal spots among the top fifty has hardly risen amongst those buying their first home.
Mary Lou-Press, president of NAEA Propertymark, said the appeal of cities was growing as London remained out of reach. She said: “Coastal locations can offer a slower and more picturesque quality of life… but the latter can be appealing for younger people due to greater economic opportunities, cultural attractions, and diverse amenities.
“It’s likely we will continue to see a shift in first-time buyer activity within city centres as London remains increasingly desirable yet unaffordable for many people stepping onto the property ladder for the first time. This is likely pushing many to enter more affordable cities and it’s unsurprising that Scottish cities are placed firmly at the top, as these can offer a blend of career opportunities, landmarks, and access to green spaces, all at a lower cost than many other major UK cities.”
The analysis, which scrutinised enquires from January till May this current year in comparison to the identical timeframe in 2015, zeroed in on homes that typically appeal to those taking their initial step in owning property, such as properties with up to two bedrooms.
First-time buyer demand (2025 vs 2015)
Dundee +176 per cent
Edinburgh +91 per cent
Doncaster +74 per cent
Liverpool +73 per cent
Plymouth +71 per cent
Glasgow +65 per cent
Preston +63 per cent
Winchester +51 per cent
Newcastle upon Tyne +38 per cent
Newport, South Wales +29 per cent
The average first-time buyer price in Dundee for a home is £121,000.