Wales has been identified as the least affordable region in Great Britain for first-time buyers looking to purchase a home in their local area, according to a new affordability report.
The home affordability index, published by Skipton Group building society, found that six of the ten least affordable areas for first-time buyers in Britain are located in Wales. The index considers factors such as local house prices and the average income of potential buyers, using data from the building society, the Office for National Statistics (ONS), the Bank of England, and the Land Registry.
The Welsh government acknowledged the challenges facing first-time buyers and highlighted its efforts to ease the situation through the extension of the Help to Buy Wales scheme.
Ceredigion and Powys Among the Most Unaffordable Areas
Ceredigion and Powys emerged as the least affordable regions in Wales for local first-time buyers. In Ceredigion, where the average house price stands at £236,000—above the Welsh average—less than 3% of potential first-time buyers can afford to purchase a home. Despite its high property prices, Ceredigion has the seventh lowest median income in Great Britain.
Owen Shiers, a 40-year-old freelance musician from Ceredigion, shared his struggles with homeownership, saying he had “given up” on the prospect of owning a house. Living in a social housing co-operative near Eglwys-fach, he helps manage and maintain the property alongside other tenants.
“I think people forget that Ceredigion is one of the poorest areas in northern Europe,” Shiers said. “There’s a huge inequality between those who grew up here and those moving in from larger cities with significant financial resources.”
The Growing Housing Crisis in Wales
Shiers expressed concern over the broader impact of unaffordability on Welsh culture and language. He cited his sister’s experience, who was unable to afford a home in their childhood village and had to relocate with her young family.
“We often realize the consequences too late,” he said. “It’s like watching a slow-motion car crash, feeling powerless to stop it.”
Wales’ Least Affordable Areas for First-Time Buyers
The report identified the following regions as the most challenging for first-time buyers:
- Ceredigion – Only 2.7% of first-time buyers can afford a home
- Powys – 2.7%
- Pembrokeshire – 2.9%
- Cardiff – 3%
- Vale of Glamorgan – 3.1%
- Monmouthshire – 3.3%
Surprising Findings in the Report
Stuart Haire, CEO of Skipton Group, noted that many would expect London and the South East to be the least affordable for first-time buyers, making Wales’ ranking particularly striking.
“The first step onto the property ladder is already difficult, but for Welsh first-time buyers, it must feel nearly impossible,” Haire said. “Our new data highlights just how severe the affordability challenge has become.”
Limited Housing Options and Rising Interest Rates
Tania Dutnell, an estate agent in Ceredigion, pointed out that the type of properties available also plays a role in affordability issues. She noted that while many large homes are on the market, there is a shortage of smaller, more affordable properties.
Additionally, rising interest rates have made homeownership even more difficult for first-time buyers.
“For many, options include staying with parents and relying on the ‘bank of mum and dad’ for deposits,” Dutnell explained. “But those in rented accommodation are finding it extremely difficult to save, as high rent prices eat into their earnings.”
Efforts to Address the Crisis
Ceredigion council stated that its planning department has set a goal for 20% of new homes in the county to be classified as affordable—an objective that has been exceeded, with 37% of permitted houses and 33% of completed homes meeting affordability criteria.
The council has also introduced a Community Housing Scheme, which provides an equity-sharing model to help local residents get onto the property ladder.
Meanwhile, the Welsh government emphasized its commitment to supporting first-time buyers.
“In December, we launched the extension of our Help to Buy Wales scheme, which has already assisted over 14,500 people unable to afford a home,” a government spokesperson said. “Our Self Build Wales initiative also offers loan funding for land and construction costs, creating more opportunities for homeownership.”
Despite these efforts, the affordability crisis in Wales continues to pose a significant challenge for aspiring homeowners.