A new study has revealed the most challenging cities for first-time buyers, based on those with the largest property price increases.
Mortgage specialists at Bower Home Finance examined data from HM Land Registry to reveal the cities with the largest property price increases from August 2025 to August 2026.
For Northern Ireland cities, the data was collected from April to June 2026 and compared to the same time period from the previous year.
The study focused on all property types in each city, including detached, semi-detached, and apartments.
As the timeframes between Great Britain and Northern Ireland are different, the study presents two separate rankings.
Great Britain's Ranking (excluding Northern Ireland):
Hull leads the ranking for the largest property price increase recorded in Great Britain. Property prices in the city have increased by 6.6% from August 2025 to August 2026.
However, property prices in Hull are the second lowest in the country overall, setting buyers back by an average of £136,593.
Newcastle has recorded the second-most unstable property prices in Great Britain. According to the study, prices in the city have increased by 5.8% within 12 months.
For people looking to purchase a property in Newcastle, the average price is now £211,255.
Durham has recorded the third-highest property price increase in Great Britain. Between August 2025 and August 2026, property prices in the city soared by 4.9%.
However, property prices in Durham are relatively low, with an average cost of £140,778.
Liverpool is named as the fourth-most challenging city for first-time buyers in Great Britain. The study found that property prices in the city have increased by 4.7% in the past 12 months.
The average property price in Liverpool is £188,427.
Lancaster has recorded the joint-fifth-highest property price increase in Great Britain, with prices rising by 4.6% from August 2025 to August 2026. For first-time buyers looking to settle in Lancaster, the average house price is now £203,781.
Sunderland ties in fifth place with Lancaster, also recording a 4.6% price increase. Properties in Sunderland now cost an average of £147,763.
Other cities that have faced high property price increases include Dundee, Coventry, Doncaster, and Wrexham.
Northern Ireland's Ranking:
According to the study, Newry has experienced the largest property price increase in Northern Ireland. Property prices in the city soared by 12.8% from April to June 2026 compared to 2025 data.
The average property price in Newry is now £220,572, which is one of the highest figures in Northern Ireland and is almost 9% higher than Northern Ireland’s average property price of £202,487.
Derry is identified as the UK city with the second-most unstable property prices. The study found that property prices in the city have increased by 12.4% from April to June 2026 compared to 2025.
The average property price in Derry is now £189,474.
Lisburn is named the third-most challenging city for first-time buyers, with property prices increasing by 9.7%. Lisburn’s average property price is now £240,737, which is the highest figure in Northern Ireland and nearly 19% above Northern Ireland’s average property price of £202,487.
Armagh recorded the fourth-highest property price increase in the UK. Property prices in Armagh increased by 9.2%, with the average property now costing £186,993.
Belfast has the fifth-most unstable property market in the UK, experiencing a 7.7% price increase. Properties in the Northern Ireland capital now cost an average of £184,768.
Across England, Scotland, Wales, and Northern Ireland, the study found that the average house price in August 2026 was £272,858.
On the other end of the scale, the research reveals that 20 UK cities have experienced property price decreases during the study’s timeframe.
Westminster is crowned the UK city with the largest property price decrease, with prices falling by 14.3% from August 2025 to August 2026.
Despite these significant decreases, property prices in Westminster remain the highest in the country, setting buyers back by an average of £887,206.
Aberdeen has experienced the second-highest property price decrease in the UK. The study found that property prices in the Scottish city have decreased by 5.2% over the course of 12 months.
Property prices in Aberdeen are now the lowest in the country, costing an average of £133,782.
Oxford has recorded the third-biggest price decrease, falling by 2.9% between August 2025 and August 2026.
However, property prices in Oxford are still among the highest in the country, costing an average of £478,080.
Other cities that have recorded slight property price decreases include Chichester, Chelmsford, London, Cambridge, Brighton, and Norwich.
Geoff Charles, the CEO of Bower Home Finance, commented:
“As the cost-of-living crisis surges on in the UK, many potential first-time homebuyers are facing increasing setbacks to owning their first property.
“Northern Ireland dominates the study’s ranking of the cities with the largest property price increases.
“Although average property prices in Derry, Armagh and Belfast remain below the Northern Ireland average of £202,487, the speed at which prices are increasing could still create additional challenges for prospective first-time buyers.
“Meanwhile, first-time buyers shouldn’t be swayed into purchasing properties in cities with the largest property price decreases.
“The research also shows that average property prices in most of these cities remain above the UK average of £272,858, highlighting that a decrease in prices does not necessarily mean a city is affordable.
“Newport, Stoke-on-Trent, Perth, Peterborough, Nottingham, and Aberdeen are among the few exceptions to this.
“Instead, first-time buyers should be looking out for the cities with the most stable property markets.
“These include cities like Sheffield, Milton Keynes, Portsmouth, Lincoln, and York, where property prices have only risen slightly within the past 12 months.
“Meanwhile, property prices in Southend-on-Sea have stayed completely stable, neither increasing nor decreasing from August 2025 to August 2026.
“Property price changes can create challenges for first-time buyers whichever way the market moves. When prices rise, the deposit target can move further out of reach, and borrowing limits may not stretch far enough.
“Meanwhile, cities with high property price decreases may initially look promising, but they carry their own risks. Recent buyers with small deposits can find themselves in negative equity, making it harder to move or remortgage.”
