Wales has ‘least affordable’ homes in Britain

Local TV

Wales is now the worst place to be a first-time home buyer anywhere across Great Britain. With second home ownership rising over the last decade and relatively lower wages, it’s a perfect storm for those trying to get on the property ladder.

Transcript

00:00Wales is the least affordable place in Britain to buy a first home, according to recent findings

00:04from the Skipton Group Building Society. Of the top 7 least affordable areas in the country,

00:096 of them are in Wales, with Ceredigion the least affordable anywhere across Great Britain.

00:15The research shows that less than 3% of people can afford a first home without added financial

00:20support like gifts from family in Ceredigion, and the figures are only marginally different

00:24in Powys, Pembrokeshire, Cardiff and the Vale of Glamorgan, who all make up the top 5 least

00:29affordable places to buy a first home. The findings take into account average wage as

00:34well as house prices, so given Wales' relatively low wage bracket, it's no surprise that desirable

00:40locations for second homes like Ceredigion and Pembrokeshire make up some of the most

00:44expensive places to buy a house in the country. In an effort to tackle the growing problem,

00:50In an effort to tackle the growing problem, the Welsh Government have given local authorities

00:55added powers to increase council tax on second homes and long-term empty properties by as

01:00much as 300%. Pembrokeshire has already seen the effects of the new price hikes, with a surge in

01:06people put in second homes on the market in an effort to avoid the new council tax rates,

01:10with house prices also coming down in Ceredigion. While still above the national average, houses in

01:16Ceredigion have decreased in value by roughly 2.4% in the last year, bucking the trend across

01:21the UK in house price increases. House prices, and in particular the unaffordability of houses,

01:28have been a big topic of conversation in recent years. It seems second homes in parts of Wales,

01:33generally lower wages in the country and other factors, are impacting people's ability to buy

01:37homes all across the country. James Beach Watkins reporting for Local TV in Cardiff.

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