First-time buyer demand in urban areas has surged, with Dundee, Scotland, experiencing a remarkable increase. According to recent data from Rightmove, demand among first-time buyers in Britain’s 50 largest cities has risen by 16% since 2015. This trend comes at the expense of coastal towns, where demand has stagnated due to high prices and inadequate transportation links.
However, Dundee has defied this trend, witnessing a 176% surge in demand from first-time buyers over the past decade. Rightmove’s analysis compared data from January to May 2025 with the same period in 2015, highlighting Dundee’s unique appeal.
Dundee’s Transformation and Appeal
Dundee, Scotland’s fourth-largest city, has undergone significant rejuvenation, partly due to its burgeoning arts, design, and culinary scenes. Home to the University of Dundee, the V&A Dundee, and historic sites like Broughty Castle, the city offers a blend of cultural and recreational attractions.
Kyle Anderson, managing director of McIntyre Properties in Dundee, noted, “This is a trend we have seen in recent years. With the level of investment and development in the city, it has become a desirable place to live, yet remains relatively affordable compared to the rest of the country.”
First-time buyers in Dundee often choose the West End for its traditional flats near the city center, while others opt for affordable former local authority houses further afield, ideal for small families.
Comparative Growth in Other Cities
While Dundee leads in growth, Edinburgh saw the second-largest increase in first-time buyer demand, rising by 91%. Doncaster followed with a 74% increase, while Liverpool and Plymouth saw over 70% growth. Other cities like Glasgow, Preston, Winchester, Newcastle upon Tyne, and Newport also performed strongly.
Conversely, London bucked the trend, with overall demand falling by 7% over the past decade. Higher asking prices are likely a contributing factor, according to Rightmove.
Expert Insights and Market Dynamics
Colleen Babcock, Rightmove’s property expert, commented, “Over the last ten years, we’ve seen significant changes in the property market. During the pandemic, many people temporarily left cities for coastal or countryside areas.”
“Comparing where we are now versus a decade ago, there’s a clear appeal for first-time buyers to live in cities, though the data shows variation from city to city,” Babcock added.
Mary Lou-Press, president of NAEA Propertymark, emphasized the contrasting appeal of coastal and urban living. “Coastal locations offer a slower, picturesque lifestyle, while cities provide vibrant, fast-paced environments with economic opportunities, cultural attractions, and diverse amenities,” she explained.
Future Outlook and Market Implications
The shift in first-time buyer activity towards city centers is expected to continue, particularly as London remains desirable yet unaffordable for many. Scottish cities, offering a blend of career opportunities and lower living costs, are likely to remain popular.
As urban demand grows, potential buyers are advised to secure mortgage rates promptly, considering the fluctuating market conditions. With cities offering diverse housing options, first-time buyers have opportunities to find affordable homes that meet their needs.
Spotlight on Affordable Housing Options
- Two-bed house, Dundee: Available for offers over £150,000, featuring a large garden and pre-approved extension plans.
- Two-bed flat, Edinburgh: Listed for offers over £200,000, located in a traditional tenement building near the city center.
- Two-bed house, Liverpool: Priced at £159,150, with spacious living areas and low-maintenance gardens.
- Two-bed house, Doncaster: On sale for around £155,000, offering modern amenities and a generous garden.
As the housing market evolves, first-time buyers are encouraged to explore their options and consider emerging urban areas like Dundee that offer both affordability and a high quality of life.