Wales has emerged as the most challenging area in Great Britain for first-time buyers, according to recent research. Counties like Ceredigion, Powys, and Pembrokeshire have ranked highest on the latest Skipton Group home affordability index, revealing that less than 3% of potential first-time buyers can afford a home in these regions.
The list of top ten least affordable areas also includes Cardiff, Vale of Glamorgan, and Monmouthshire. Skipton Group expressed surprise at the significant presence of Wales on this list, as such rankings typically feature London and the South East predominantly. Cities like City of London and Westminster, where only 3.2% and 3.9% of residents can afford a property, were further down the list.
In contrast, Scotland stands out on the list of most affordable areas in Great Britain, with nine out of ten places located north of the border. Aberdeen City claimed the top spot as the most affordable place, where 31% of individuals can afford to buy a home. Aberdeenshire and Na h-Eileanan Siar followed closely, with 28.2% and 25.1% of people being able to afford a home. Manchester City was the only non-Scottish location that made it to the most affordable list, with 23.1% of residents able to purchase a home.
The report highlights that nearly 90% of potential first-time buyers require additional financial support to enter the property market. This revelation comes as stamp duty thresholds are set to decrease from April in England and Northern Ireland, potentially leading to over 75,000 buyers missing the deadline and facing higher tax payments.
Stuart Haire, the CEO of Skipton Group, commented on the findings, noting the unexpected prominence of Wales as a challenging area for first-time buyers. He emphasized the significant hurdles Welsh first-time buyers face in achieving homeownership, particularly due to the absence of land transaction tax relief for this demographic in Wales.