Welsh property market booming thanks to first-time buyers and university
It's no secret that the UK's property market is currently on the rise thanks to economic growth, and government measures like the cut in stamp duty tax. However, data from Savills and the Council of Mortgage Lenders (CML) has revealed that the Welsh property market is experiencing a very significant boom, mainly due to first-time buyers and parents investing in property for their children to live in during their time at university.
According to data from Savills, the number of first-time buyers across Wales is up, particularly in areas such as Cardiff and Newport where new-build properties are in abundance. The data revealed that 49% of buyers were aged under 40, and data from the CML showed a 14% year-on-year rise in the number of loans given out to first-time buyers, compared to just a 4% rise in loans given out to home movers. These stats indicate that more parents are indeed entering the property market as a way of providing their offspring with a place to live during their studies.
Help-to-Buy scheme taking off
In January 2014, the Welsh Help-to-Buy scheme came into force, and the figures show that the scheme played a huge part in helping first-time buyers. Since its launch, the scheme has assisted 1,400 sale completions, 74% of which were by first-time buyers. The average age of these buyers was 30, with the average sale price of properties bought under the scheme standing at £178,000. The UK Government set aside £170 million when the scheme was launched, and to date, £48.7 million of this has been spent. The scheme is expected to close in March 2016, but many experts believe the government will announce an extension to this date in due course.
According to the figures, flats in Cardiff were the most popular new build product because of downsizers and the relatively small budget of first-time buyers. In Cardiff, 70% of new property sales were flats, compared to 15% for Wales as a whole. The figures also showed that even in Swansea and Newport, where students and first-time buyers are also prominent, only 25% of new sales were flats!
Why is Cardiff so popular with first-time buyers?
The report indicated that Cardiff's range of universities was a key factor in the city's property sales growth, with many parents opting to purchase flats in Cardiff city centre and Cardiff Bay for their children to live in while studying. Parents also indicated that they were likely to retain the property after their child left university, thanks to strong demand for student accommodation and good financial yields.
Another key factor for Cardiff's significant property market growth was the news that the city's population is expected to grow faster than anywhere else across Wales over the next 25 years – 20,000 extra households are expected in total! Cardiff Council is also expected to approve 40,000 new homes in the city centre and around the suburbs of Cardiff over the next 10 years.
Are you considering buying a property in Cardiff? If so, CPS Homes can help you find the perfect property for your needs! Whether you're looking to purchase a buy-to-let property near a university, or want to move to a bigger home in one of Cardiff's leafy suburbs, we have the expertise and knowledge to get you the best price and make the buying process as smooth as possible. We can also make sure new buy-to-let homeowners are fully prepared for Rent Smart Wales. Contact our team today on 02920 668585, email: enquires@cpshomes.co.uk, or pop into one of our offices in Cathays, Cardiff Bay or Roath.
