Manchester the Mecca for first time buyers

Manchester is the best place for first time buyers looking for a return on investment, according to the Royal Bank of Scotland (RBS).

Openshaw in East Manchester, on the verge of major redevelopment, was highlighted as the number one property hotspot, offering house prices around £130,000 less than the national average and excellent prospects for growth.

Another part of Manchester, Ardwick, was identified as the third most favourable area for first time buyers, behind Middlesbrough in second place.

Falkirk in Scotland and Ferndale in South Wales came in fourth and fifth respectively, while London was represented by the boroughs of Stratford (8th) and Hackney (13th), both of which are located in the East End near the main Olympics site.

RBS took into account five key factors in determining its First-Time Buyer (FTB) Property Index, the most important of which is a below average ratio of house prices to local earnings.

Other factors include strong house price growth, urban regeneration, good transport links, and a young demographic.

Paul Jeffrey, head of mortgage products for the Royal Bank of Scotland, comments: "The FTB Property Index and comment from the RBS Economics Unit shows that there is cause for renewed optimism among buyers seeking that first step onto the property ladder.

"The Index looks to highlight how smart investing now can help first-time buyers skip a few rungs within a few years."

Other areas on the index's top 20 include Plymouth and Reading city centres, Newtown in Birmingham and Hull.

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