Surge in Swansea house prices

10-Apr-2006

Rising house prices in Swansea are preventing potential property owners from purchasing their first home, according to industry experts.

Figures released by Nationwide revealed that property prices are surging in the region, with average prices now six per cent higher than in the last quarter, with a 20 per cent growth over the last 12 months.

This rise is noticeably higher than surrounding areas and is deterring local first time buyers from joining the property market, warns Nationwide group economist Fionnuala Earley.

Aspiring first time buyers considering affordable housing options should work with a good mortgage broker.

Ms Earley explained that prices in Swansea experienced a pick-up in growth at the end of 2005, which has carried on into 2006 and looks set to continue.

"Swansea is the area that seems to have grown the fastest in Wales. The increase in the last quarter is six per cent, which is quite strong," she commented.

"The price of a typical home in Wales increased by £4,145 from £137,256 in the last 12 months."

First time buyers can make buying a new home affordable through a 'gifted deposit' scheme whereby a deposit is not required just the cost of professional and arrangement fees of £5000

Ms Earley added that first time buyers in Wales now need to earmark 41.6 per cent of their wages to pay for a mortgage, although this is still lower than the UK average of 42 per cent.

Mortgage lenders have risen to the challenge of creating a growing number of options for first time buyers.

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