Wales has been identified as the most challenging region in Great Britain for first-time buyers looking to purchase a home in their local area, according to new data.
A home affordability index report from the Skipton Group building society revealed that six of the ten least affordable areas in Britain are in Wales. The index, compiled using data from the building society, the Office for National Statistics (ONS), the Bank of England, and the Land Registry, takes into account various factors such as local house prices and the average income of prospective first-time buyers.
The Welsh government acknowledged the challenges faced by first-time buyers and responded by extending the Help to Buy Wales scheme.
Ceredigion and Powys were found to be the least affordable places in Wales for locals looking to buy a home. The ONS reports that the average house price in Ceredigion is £236,000, which is above the Welsh average. Despite this, the county has the seventh lowest median income in Great Britain, meaning fewer than 3% of first-time buyers in the area can afford a home.
Owen Shiers, a 40-year-old freelance musician living in a social housing co-operative near Eglwys-fach, Ceredigion, said he had “given up” on the prospect of homeownership. He pays rent and helps manage the property with other tenants.
Expressing his frustration, Shiers noted that Ceredigion is often overlooked as one of the poorest areas in northern Europe. He pointed out a stark disparity between long-term residents who struggle financially and wealthier individuals from major cities who move into the region.
While he once considered buying a home, Shiers described the process as overwhelming given his financial situation. “I’ve worried about it, but I’ve kind of given up. It just seems impossible,” he said.
He also voiced concerns about the broader impact on Welsh culture and language, as younger generations are forced to leave their hometowns. His sister, for instance, was unable to buy a home in their childhood village and had to relocate with her young family.
“It’s like watching a slow-motion car crash—you see the problem unfolding, but feel powerless to stop it,” he added.
Least Affordable Areas for First-Time Buyers in Wales:
-
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%
