Wales has been identified as the most difficult part of Great Britain for first-time buyers to get onto the property ladder, with six out of ten least affordable areas in the country located in Wales.
Wales has been identified as the most difficult part of Great Britain for first-time buyers to get onto the property ladder, according to a new report by Skipton Group building society. The home affordability index report found that six out of the 10 least affordable areas of Britain are in Wales.
Despite having ‘the seventh lowest median income in Great Britain,’ Ceredigion and Powys were found to be the least affordable areas of Wales for first-time buyers. Average house prices in Ceredigion were £236,000, higher than the Wales average. This means that less than 3% of potential first-time buyers living in the area can afford to buy.
Owen Shiers, a freelance musician who lives in a social housing co-operative near Eglwys-fach, Ceredigion, said he had ‘given up‘ on owning his own home. He attributed this to the high house prices and limited affordable options. Mr. Shiers expressed concern about the impact of this situation on local communities, particularly young people who are struggling to stay in their hometowns.
Interest rate rises in recent years have made it even more difficult for first-time buyers to get onto the property ladder. Tania Dutnell, an estate agent in Ceredigion, noted that many first-time buyers in the county rely on ‘the bank of mum and dad‘ or stay with parents to help with deposits. She also pointed out that there are limited small houses and terraced properties available, making it harder for people to afford homes.
The Welsh government has acknowledged the difficulties facing first-time buyers. In December, they launched an extension of the Help to Buy Wales scheme, which has already helped over 14,500 people who could not afford a home. The Self Build Wales scheme also provides opportunities for people to build their own homes through loan funding.
The report highlights the stark affordability challenge facing Welsh first-time buyers. With high house prices and limited affordable options, it seems impossible for many to get onto the property ladder. The government’s response is a step in the right direction, but more needs to be done to address this issue and support local communities.
An affordability crisis occurs when a significant portion of a population struggles to afford basic needs such as housing, food, healthcare, and education.
According to the OECD, in 2020, over 30% of households in developed economies spent more than 40% of their income on 'housing costs alone'.
This can lead to financial instability, increased debt, and reduced economic mobility.
