- Skipton Group’s Home Affordability Index Report reveals Wales is home to 6 of the 10 least affordable local authority areas in Great Britain for potential first-time buyers
- Ceredigion is the least affordable with just 3 in 100 potential first-time buyers able to secure their first home
- Low first-time buyer incomes driving lack of affordability despite house prices in Wales being below the national average
Skipton Group’s unique Home Affordability Index Report today reveals that 6 local authority areas in Wales are in the 10 least affordable areas of Great Britain for potential first-time buyers.
Ceredigion takes the bottom spot as the least affordable local authority area. Here only 2.7% of potential first-time buyers can afford the average first-time buyer home. The remaining five Welsh local authority areas are Powys (2.7%), Pembrokeshire (2.9%), Cardiff (3.0%), Vale of Glamorgan (3.1%), and Monmouthshire (3.3%).
This chronic lack of affordability across Wales is the result of consistently low first-time buyer incomes; for example, Ceredigion has one of the lowest median incomes in Great Britain. While house prices across Wales are lower than the average in Great Britain, areas like Ceredigion and Powys are relatively high for Wales, creating particularly difficult conditions for those dreaming of getting the keys to their first home in these areas.
In contrast, Scotland dominates the most affordable areas for potential first-time buyers in Great Britain with Aberdeen City taking the top spot. Even though it’s the most affordable, still only 30 in 100 potential first-time buyers in Aberdeen City can secure that first step onto the property ladder. Across Great Britain as a whole, almost 90% of potential first-time buyers cannot afford to get onto the property ladder without additional financial support.
Stuart Haire, Skipton Group CEO, said:
“People might expect London and the Southeast to dominate the least affordable areas for first-time buyers looking to get onto the property ladder in Great Britain, so it’s shocking to see Wales feature so heavily.
“The first step onto the property ladder remains by far the hardest but for Welsh first-time buyers, it must feel impossible. Our new data shows just how stark their affordability challenge is, yet it is further exacerbated by the absence of any land transaction tax relief for first-time buyers in Wales.
“But that doesn’t mean it’s much easier for potential first-time buyers in Scotland and England. Across Great Britain, almost 90% of potential first-time buyers cannot afford to buy their own home in their local area without getting any additional help.
“At Skipton, we see first-time buyers doing all they can to be in the best position to afford a home of their own: working hard, saving what they can, and making use of government initiatives designed to help them into their own homes. Despite these endeavours, monumental barriers stand in their way – barriers that can and should be removed.”
Help keep news FREE for our readers
Supporting your local community newspaper/online news outlet is crucial now more than ever. If you believe in independent journalism, then consider making a valuable contribution by making a one-time or monthly donation. We operate in rural areas where providing unbiased news can be challenging. Read More About Supporting The West Wales Chronicle
Massive issue of Property prices being totally disproportionate to wages. One of the few Labour policies I agree with is building 1.5 Million new homes. Even if these are only in the Social sector,it will shorten lists for social housing and will lower demand for property moving from private ownership into private rental stock. Schemes to help people buy without building more homes only makes homes more expensive. Buying existing homes to use as social housing only pushes up prices and leads to more demand for social housing.