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Two Welsh areas rank among most affordable for first-time buyers

07 Aug 2026 5 minute read

Nation Cymru staff

Homes in two Welsh counties have been revealed to be among the most affordable across the UK according to a newly published first time buyers’ report.

Barratt Homes has released their latest First time Buyers Report 2026 using the latest data from the Office for National Statistics (ONS), government housing reports, and a survey of 660 prospective UK first time buyers.

Barratt Homes also spoke to mortgage expert and The New Homes Group Managing Director, Terry Higgins, to ask for his thoughts on the findings.

They also analysed ONS data to identify the regions offering the best value for those looking to take their first steps onto the property ladder.

The report ranked the most affordable local authorities in Wales for aspiring homeowners, with Blaenau Gwent the most affordable in Wales, although only two Welsh locations made the UK-wide top ten:

Blaenau Gwent (£132,500)
Merthyr Tydfil (£135,000)
Rhondda Cynon Taf (£145,000)
Neath Port Talbot (£148,000)
Caerphilly (£175,000)

Below are the top ten across England and Wales:

Local authority name	UK region	Average first time buyer house price	*% under UK average house price (£311,034)**
Burnley	North West	£116,000	63%
County Durham	North East	£125,000	60%
Hyndburn	North West	£127,000	59%
Hartlepool	North East	£130,000	58%
Kingston upon Hull, City of	Yorkshire and The Humber	£131,000	58%
Blackpool	North West	£131,250	58%
Blaenau Gwent	Wales	£132,500	57%
Sunderland	North East	£134,000	57%
Pendle	North West	£134,000	57%
Merthyr Tydfil	Wales	£135,000	57%

Across the UK, Burnley ranks as the UK’s most affordable location for first time buyers, with average property prices of £116,000, 63% below the UK average of £311,034 (including London).

The North West has the highest number of locations in the top 10 with four, followed by the North East with three. Wales has two and Yorkshire has one.

No locations from the south of England or Midlands appear in the top 10.

First time buyer challenges

Barratt Homes also surveyed 660 prospective first time buyers to find out the challenges Brits face when entering the housing market for the first time.

Finding a home within budget was the clear number one concern among respondents, cited by 33%, making it the biggest challenge in the homebuying process.

In contrast, just 8% said that finding a home they liked would be their biggest challenge, suggesting that affordability is a far greater concern for first time buyers than finding the property itself.

Saving for a deposit also ranked highly, with 31% identifying it as their biggest hurdle. While building a deposit can feel like a major barrier, there are schemes available to help buyers get on the ladder sooner.

For example, Barratt Homes’ Deposit Boost scheme matches a 5% deposit up to £25,000, meaning buyers can still secure a 90% loan-to-value mortgage with just 5% saved.

As part of the survey, Barratt Homes also asked first time buyers what three sources of information they would trust the most when looking for information about mortgages:

68% said they would turn to a mortgage broker as a key source of information, meaning almost a third of first time buyers would look elsewhere for guidance.

Speaking on the results, Terry said: “Almost a third of homebuyers say they would turn to other sources of information instead of using a mortgage broker. Online research and advice from friends and family can be helpful. However, brokers play a key role in securing the correct mortgage deal for you, and in helping you to prepare for a mortgage application to give you the best chance of it being successful. A good mortgage broker will hold your hand and guide you through the whole home buying process.

“They have in-depth knowledge of lenders and their criteria and can often access deals that aren’t available directly to consumers, which is particularly valuable for those on a tighter budget or with smaller deposits.”

As AI reshapes how people access information, one in five first time buyers now say they would trust chatbots for mortgage advice. Social media ranked lowest, with just 7% opting to use it.

Despite this shift, Brits still overwhelmingly favour human guidance, with family and friends remaining the most trusted source over AI.

Stagnant market

The average UK house price flatlined last month as mortgage rates edged higher in the face of global economic uncertainty, according to new figures.

Property values for July reported no growth compared with the previous month, slowing down from 0.2% growth in June, according to the monthly Lloyds house price index.

Across the UK, the average property value in July was £299,253.

It also meant that house prices were 0.1% higher than a year earlier, the weakest annual increase since November 2023.

Northern Ireland saw the strongest growth in prices across the UK, with prices up 7.4% year on year for July at £231,131.

It compares with 3.6% growth in Scotland and a 1.6% increase in Wales.

Meanwhile, increases in northern areas of England were offset by weakness in the south, with prices in the south east down 2% and those in Greater London down 1.3%.

It comes after lenders have been hiking their mortgage rates in recent weeks, despite the base rate being held at 3.75%.

The Bank of England kept rates unchanged again last week, but cautioned inflation was set to rise by the end of the year due to the Iran war and signalled it stood ready to hike if the conflict and its effects on prices was prolonged

Check out Barratt Homes First Time Buyer Report 2026 in full via the following link: https://www.barratthomes.co.uk/advice-and-inspiration/first-time-buyer-report-2026/

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