First-time buyers are now unable to afford property in 25 of Wales' 35 main post towns, according to the first Halifax Welsh Annual First Time Buyer Review.
After experiencing a 32% rise in property value in 2003 - the second highest price rises in the UK - Welsh first-time buyers can probably now only afford to buy property in Aberdare, Caernarfon, Ebbw-Vale, Holyhead, Llanelli, Merthyr-Tydfil, Neath, Pontypool, Porth and Port-Talbot, according to Halifax.
That’s seven towns fewer for Welsh people to live in than in 2002, as the average FTB home was worth £80,059 at the end of 2003 compared with £60,887 in the previous year.
As a result, the number of FTBs still looking at buying has dropped by 43% from 28,000 to 16,000 – much higher than the 32% UK average reduction in first-time buyers between 2002 and 2003.
Moreover, the Welsh FTB probably now pays an average £800 in stamp duty, equating to at least two weeks of their annual income, because the government has not raised the stamp duty threshold since 1993, while the average deposit starts at £11,742 or almost 15% of the property’s value.
The average first-time buyer in Wales is also much older than the national average, suggests Halifax, at 36 years old, while just 16% of those under 25 can still afford to get onto the property ladder.IFAonline
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