The surprising coastal city where millennials are snapping up homes
The average house price in the Scottish city is £174,047, according to Rightmove, and has only grown by 1pc since last year, making it an attractive destination for cash-strapped young people.
Demand for properties in Dundee surged by 176pc in the past 10 years, the website said – the highest of any city. It was followed by Edinburgh and Doncaster, where demand surged by 91pc and 74pc respectively.
Westport Properties, a management company, said Dundee offers 'affordability, culture and jobs, but has limited nightlife and weather challenges'. It also lacks the 'majesty of Edinburgh or the vibrancy of Glasgow'.
Rightmove's research looked at the average demand in Britain's 50 largest cities between January and May 2015 and compared it with the same period in 2025.
It found that demand for properties in Dundee had almost tripled in that time, and that the number of people looking to move cities had jumped by 16pc.
Cameron Ewer, Savills' head of residential in Scotland, said the influx of first-time buyers in Dundee and other university cities could be students opting to buy rather than rent.
He said: 'You may also see Scottish students who are reluctant to pay full fees in England increasingly deciding to study in Scottish cities. Scotland as a whole has also been benefiting from buyers coming from the South.
'The cost of living is also a lot higher in the South, and you can have a good quality of life in Scotland while also achieving good capital growth.'
Colleen Babcock, of Rightmove, said: '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.
'However, the data does show that it can vary quite widely from city to city, and it will also depend on how first-time buyer-friendly a particular location is in terms of the type of homes that are available for sale.'
London was the only city where demand from first-time buyers had not increased in a decade, due to high property prices.
Interest in coastal areas has also remained flat for a decade, Rightmove found, while demand for northern cities like Edinburgh has surged.
Average homes in the Scottish capital sell for £337,922 – well within the £450,000 Lifetime Isa limit.
Mark Dyason, of brokerage Edinburgh Mortgages, said successive tax raids on landlords had freed up properties to be snapped up by first-time buyers.
He said: 'Amateur landlords have exited the market under this tax regime because they're seeing greater returns elsewhere.'
Many of the first-time buyers Mr Dyason sees are young professionals working in the thriving finance and technology sectors.
He added: 'It's a relatively small city with great culture, and it's a nice place to be – you can build a good career here.
'It's not central London, though. It's not unaffordable, but you still need a decent job and to be doing well to buy a property near the centre.'
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