Welsh buy homes 'to be close to loved ones'

Four in ten first-time buyers in Wales choose a property because it's close to their relatives Photo: Chris Radburn/PA Wire

Being close to loved ones is a bigger factor for Welsh people in choosing a new home compared to those in other parts of the UK.

Research shows 40 per cent of first-time buyers in Wales bought their first property in order to be near to their relatives - compared to just 28 per cent in the rest of the UK.

Furthermore, six in ten people in Wales buy their first property for their partner and children, or future children, to live in.

The survey from Yorkshire Building Society also reveals some mixed fortunes for first-time buyers:

  • A typical first home in Wales costs £106,245
  • Deposits are comparatively low in Wales at £16,245 compared to £26,250 nationally
  • However, only 32% of potential first-time buyers can afford to make regular savings in order to be able to afford a deposit - 4% less than the national average
  • Potential first-time buyers in Wales put away £205 each month - less than the UK average of £272

Property experts say there is no cause for concern, however.

Lower incomes mean that Welsh savers are able to put away less each month than the UK average but this is counter-balanced with the smaller deposits they require.

"As long as some savings are put away each month and property aspirations remain high, potential first-time buyers in Wales will be well on their way to purchasing that first house for them and their family.

– Chris Smith, Group Direct Mortgage Manager at Yorkshire Building Society

However, Welsh first-time buyers have shown themselves to be financially savvy, with 10% of potential purchasers cutting back on luxuries in order to raise their deposit and 12% asking their parents for help.

Almost four in ten said they made the decision to buy as they felt renting was a waste of money, and 35% felt that buying property was a good investment.

When asked what they wanted from their first home, 59% of potential first-time buyers in Wales wanted a garden, 26% wanted a low-maintenance home and 22% chose one close to good schools.