Written by John Bayliss
Senior Account Executive
House prices for first time buyers in Wales have risen this year, a key indicator of the devolved nations’ attractiveness for new homeowners looking to get onto the property ladder and a boost for major housebuilders.
As of May 2017, the average home cost a first time buyer £130,125, representing a 4% increase on the previous year’s performance.
Housebuilders will take note of the overall increasing house price values for first time buyers, which demonstrates growing demand from a key section of the housing market.
The top five authority areas which increased the most were Bridgend (9%), Carmarthenshire (7%), Ceredigion (7%) and Newport (7%).
Monmouthshire, soon to be a commuter suburb of Bristol?
A key area of anticipated growth in Wales will be Monmouthshire, which is strategically nestled in between significant employment centres at Cardiff, Newport and Bristol. The average house price here was £179,684 in 2017, a growth of 5% on the previous averages.
The pressure on this authority, located on the border between England and Wales, to provide new housing for all sectors of the housing market is anticipated to grow even more due to the recent UK Government announcement that it intends to abolish the tolling regime for the Severn Bridge M4 crossings by the end of 2018.
Monmouthshire Councillors have already begun raising concerns that an increased focus on the authority from homebuyers in general could create problems for existing communities, asserting there is a need to invest in road and community infrastructure before this growth takes place.
First time buyers working in Bristol, but choosing to live in Wales stand to make an annual saving of £1,742 as a result of this decision which, given their property ladder aspirations, is a significant expense that can soon be diverted towards the purchase of a property.
With the average property sold in Bristol going for £289,685, Monmouthshire could become a key commuter destination given its relative affordability and close location.
Issues on the Horizon
Not all local authority areas fared positively in the first time buyer league table, with properties located in Gwynedd, Blaenau Gwent and Torfaen suffering a significant fall in average value.
Given the targets for thousands of new homes in these specific areas, it will be difficult to envisage the market finding this economic environment conducive towards providing additional units, let alone prospective new homeowners risking the difficulty of their newly bought property falling into negative equity.
For more information about housebuilding in Wales please contact John Bayliss on 02921 670 468 or email via email@example.com