Wales the Hardest Place to Purchase Property in the UK for First-Time Buyers, According to Reports

In Skipton Group’s Home Affordability Index, data showed that 60% of the ten most unaffordable places in the UK were found across Wales. Clearly, Welsh consumers looking to buy their first home are struggling to find their footing on the first rung of the property ladder.

Out of the UK’s top ten unaffordable places for first-time buyer purchasing, Wales found itself in each of the top five spots.

Ceredigion and Powys are the most challenging places to purchase property, with only 2.7% of the first-time buyer population able to buy.

Monmouthshire and the Vale of Glamorgan were the most affordable out of the unaffordable six, the only two with over 3% of first-time buyers able to purchase homes.

These statistics beg the question: is there a clear affordability problem in significant areas of Wales? Are those being priced out opting to rent property instead?

Monthly Rental Figures in Wales

As of February 2025, Wales’ average monthly rent stood at £785 – the second most affordable part of the UK after the North-East. The ONS’ latest data shows Ceredigion had an average rent of £673 – 15% below the Welsh average. Powys had an average of £580 and Pembrokeshire had £646.

Cardiff showed figures of £1,093, the highest out of these six areas in the country, with the Vale of Glamorgan’s monthly rent average at £913. Monmouthshire came in between these two locations, with an average figure of £950.

As you can see, Powys, Pembrokeshire, and Ceredigion have the cheapest average monthly rental prices out of the six most unaffordable places in Wales. They ranked 2^nd, 3^rd, and 1^st respectively for unaffordability for first-time buyers.

This mismatch between high unaffordability and cheaper rents shows a strong demand from buyers prior to Stamp Duty changes at the end of March.

Does this reflect limited housing stock for sale, consequently inflating property values, making mortgages less accessible?

What Does This Mean for Mortgage Advisers?

It’s a challenging market that everyone in the industry is fully aware of. However, there are opportunities here for you to add true value to your clients’ experiences.

In areas like Ceredigion, Powys and Pembrokeshire, where first-time buyer affordability is low but rental prices remain relatively cheap, potential buyers may be saving while they rent or even considering shared ownership.

Should you be looking to optimise your landlord insurance offering in areas such as these, so you can continue to write consistent levels of products?

By honing your services in on a buy-to-let area, you can provide value in your conversations with an awareness and knowledge of the current market situation.

As an adviser, your role is more important than ever in helping these individuals navigate a difficult landscape and find creative, practical solutions.

How Does GI Fit into This?

With first-time buyers more than likely unfamiliar with how Home Insurance works, it’s down to you to guide them toward a policy that fits their needs.

There are so many things to consider for a first-time buyer when purchasing their home, that their Home Insurance policy may seem like a side note when compared to finalising a house move. However, a quality Home Insurance policy is incredibly important, as those familiar with the industry will know.

You can assist and make their experience seamless, ensuring they’re not underinsured or in possession of an inaccurate policy.

Want to find out more about how we can assist you to provide Home Insurance products to your clients? Drop our Business Relationship Management team at [email protected].

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References

Skipton Group Home Affordability index (2025) Skipton Group. Available at: https://www.skiptongroup.com/affordability-index/ (Accessed: 20 March 2025).

Housing Market Indices team (2025) Private rent and house prices, UK: February 2025, Private rent and house prices, UK – Office for National Statistics. Available at: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/february2025 (Accessed: 16 April 2025).