Buying a house in the current lodging market is tough. Becoming a first-time house buyer is very tough. Recent research by the Chartered Institute of Housing Cymru (CIH) have show just how hard it have go for people in Cymru aged 20-39 to get a beachhead on the lodging ladder, as the spread between house terms and wages increases.

The survey showed that immature workings households in Wales currently earn on average £27,039, however the cost of a two sleeping room house is almost four modern times that at £107,864. In some rural countries the state of affairs is even worse, with house terms around five modern times the average household income. The most expensive countries according to the study were Monmouthshire (£147,084), Cardiff (£142,773) and the Valley of Glamorgan (£138,019).

A representative of the CIH said “Young households are being forced out of the property market across the country … It is particularly bad inch countries where wages and wages are low yet demand for homes is high.”

However the intelligence is not all bad for first-time buyers in Wales, as the Royal Bank of Scotland have got announced that the Rhondda town of Ferndale have been crowned the most desirable investing topographic point for new home buyers in the its first-time buyer property index.

A interpreter from The Royal Bank of Scotland said, “The index uncovers that for savvy house hunters, the most important facets determining hereafter tax return on investing are the low house terms to high income ratio and the recent house terms growing rate of the area, alongside any regeneration prospects.”

Ferndale topped the chart despite earlier this twelvemonth gaining the doubtful differentiation of coming underside in a house terms conference of 1,414 Welshman and English Language towns based on terms since 2000.

In the aftermath of the recent market upturn in the town, it is now boasting a large number of “for sale” and “sold” marks and looking to attract more than than first-time buyers.

According to The Royal Bank of Scotland, “Buying in an up-and-coming property hot spot can assist first-time buyers ascent the ladder faster to their ideal property or location in the future”.

Housing organisation Rightmove believe that with property terms in Cymru bucking the current United Kingdom diminution in house terms and outstripping the remainder of United Kingdom by more 7% and correcting a former 6% terms slump, the lodging market in Cymru is starting to look brighter for sellers.

Rightmove also declared last calendar month that almost 120,000 Sellers in England and Cymru cut their request terms in the four hebdomads up to 6th August and declared that this reflected that it is currently a buyers’ market as, “There is too much unsold property still available to anticipate anything other than a continuance of unchanging request terms this year.”

Rightmove said that with house terms doubling over the last five or six old age and mortgage rates having also recently risen, the lone low-cost option for some people is to lease property rather than buying.

Isabelle Kassam authorship for Moneynet believes that since, “Interest rates drop recently but mortgage lenders have been slow to go through the reduction on to consumers. Borrowers who are holding out for an even lower fixed rate are playing an apprehensive waiting game.”

The state of affairs makes not look good for those who are presently in rented adjustment hoping for the clime in the lodging market to get better, as the Royal Institution for Chartered Surveyors (RICS) have got revealed that rents have risen at their fastest rate for four years. This is rubbing salt into the lesions of would-be first-time buyers, as tenant demand is rising on flats as prospective first-time buyers battle to afford their first property. A barbarous circle have been created that is affecting many prospective buyers. While not beingness able to currently afford to buy, the higher rents are preventing the hopeful first-time buyers from economy enough to get out of the rented adjustment trap.

Mr Shipside of Rightmove indicated that those being ache most, “really is first-time buyers, and there is a batch of demand for flats. Two one-thirds of tenants are actually under 35, so they are the people that are being ache by rising house terms and rising mortgage rates."