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The hardest place to buy a house in Wales where the average price is £257,318
The hardest place to buy a house in Wales where the average price is £257,318
House prices across Wales have risen sharply, but local wages haven't kept up
Colourful houses in Aberaeron, Ceredigion
(Image: Getty )
You have probably noticed that property prices have soared over recent years, which might be good news to some home owners, but makes things slightly tricky if you're a first time buyer. Wales is also now home to some of the least affordable places in the UK for first-time buyers, with five Welsh areas appearing in the top ten hardest places to get on the property ladder according to the Skipton Group Home Affordability Index 2025.
In Ceredigion and Powys, only 2.7% of people can afford the average first-time buyer home which is even less than in parts of London. Affordability is also proving to be a widespread issue across both rural and urban parts of Wales with Cardiff, the Vale of Glamorgan, and Monmouthshire also featuring on the list.
This is significant because house prices in Wales have risen sharply, but local wages haven't kept up. Love dreamy Welsh homes? Sign up to our newsletter here
As a result, many people who live and work in these areas will likely be priced out of their own communities.
In Ceredigion, house prices have sold for an overall average of £257,318 over the last year.
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Currently, there is a 25% extra charge on top of the normal level of council tax for second homes and long-term empty properties in the county, which locals have said for many years has been a recurring problem.
And in 2023, Ceredigion County Council consulted with residents and stakeholders on what level of council tax premiums should be charged on long-term empty properties and second homes in Ceredigion.
However, it was found that 'increasing Council Tax premiums would not result in the desired outcomes' was a prevalent theme throughout the comments.
Just over half of these comments noted that an increase would not improve the availability or affordability of homes according to the council.
And in Powys, houses have sold for an overall average of £273,537 over the last year according to Rightmove.
It was described as "virtually impossible" in 2021 for first time buyers to purchase a property here, and judging by the data it looks as though little has shifted.
The Powys County Times reported: 'Plaid Cymru councillor for Glantwymyn Elwyn Vaughan noted that issues such as rising second-home ownership in Mid-Wales beauty spots are making it virtually impossible for first time buyers from Powys to own their own home, after new figures provided by HM Land Registry and the Office for National Statistics showed the average property price in the county is now £206,656, a huge 8.2 times greater than the average median salary of £25,197.'
The Home Affordability Index notes: 'First-time buyers face a particularly challenging situation, with only 11.5% of potential first-time buyers able to afford to get onto the property ladder based on their own financial situation, and in certain local authority areas the challenge is far more acute.
'The Home Affordability Index shows that upcoming reforms to first-time buyer stamp duty relief and the continued freezing of LISA thresholds are limiting the ability of first-time buyers to benefit from these policies.
'This report provides important new analysis that can help shape the policy debate around the design of these policies.'
Support available for first-time buyers in Wales
The Help to Buy Wales scheme serves as a valuable support option, providing an equity loan of up to 20% of the cost of new-build homes priced up to £300,000.
The Tai Teg scheme also aims to increase access to affordable housing, including properties available for purchase, and may offer help with buying homes on the open market.
Another useful option is a Lifetime ISA (LISA) which is a government-backed savings account designed to help first-time buyers save for a home.
You can deposit up to £4,000 each year and the government adds a 25% bonus on top - up to £1,000 annually. The funds including the bonus can be used towards the purchase of your first home worth up to £450,000.
Have you got a story you want to share about buying your first home in Wales? Feel free to get in touch:
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