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First-time buyers will need a sizeable £20,063 deposit to buy a house in Swansea

Research by a national housebuilder has revealed that the average buyer in Swansea will need to save a sizeable £20,063 for a house deposit.

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One of St Modwen's new homes in Swansea

The recent findings may come as disappointing news to many first-time buyers, with 37% already feeling pessimistic about their chances of getting a foot on the property ladder.

The research, by national housebuilder, St. Modwen Homes, has revealed that, on average, buyers in Wales are having to save between £19,867 and £34,701 for a house deposit, depending on where they wish to live.

Despite the deposit figures being substantially higher in certain areas, there are some locations in Wales where first-time buyers can expect to pay less. And there are ways they can put down a lower deposit, helping them get onto the property ladder.

St Davids is the place where prospective buyers can expect to pay the highest deposit (£34,701), while Wrexham is the most affordable city on average (£19,867).

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Check out the full breakdown below, ranked from highest average deposit to lowest:

  1. St Davids: £34,701

St Davids is Britain’s smallest city and considered a great place to live due to its stunning natural beauty and strong sense of community. The city is situated within the Pembrokeshire Coast National Park, and offers a mix of history, culture, coast and countryside. Although the city may be a beautiful place to live, the average deposit is a huge £34,701, which may be out of reach for some first-time buyers. If this is the case, don’t worry – there are plenty of other beautiful locations in Wales to choose from!

  1. St Asaph: £30,509

St Asaph, a small city on the River Elwy in Denbighshire, offers a charming, close-knit community with picturesque surroundings. If you love the outdoors, this place may be the perfect location for you to buy your first home. However, the average deposit in this city is £30,509, which is considerably more than other cities in Wales.

  1. Cardiff: £29,353

Cardiff, the beautiful capital of Wales, offers a blend of historical significance and modern amenities that make it an appealing place to both live and buy a first home. With various eateries, galleries and bars as well as its scenic coastline, there’s always something exciting to do. With the average deposit here being over £5,000 less than St Davids, Cardiff is a great option for first-time buyers.

  1. Newport: £24,800

For first-time buyers who want a more affordable option to Cardiff, Newport may be a great choice and is just 12 miles away. The average house deposit in this city is £24,800, and residents can take advantage of everything this location has to offer, including plenty of restaurants, shops, and leisure centres, as well as stunning coastal walks.

  1. Bangor: £22,063

Bangor is the oldest city in Wales and has plenty of heritage, culture and countryside to enjoy. The city is home to Bangor University, which attracts a diverse range of students, bringing a youthful and vibrant atmosphere to the area. The average house deposit here is a lot less than other cities in the UK. However, the location is at the top of North Wales, so it’s not as easy and quick for residents to travel to other parts of the UK in comparison to other Welsh cities.

  1. Swansea: £20,063

Despite being the second largest city in Wales, the average deposit needed to buy a home in Swansea is a lot less than some other locations, which makes it an attractive place for first-time buyers. The location provides the ideal mix of city and coast – offering residents the best of both worlds. With the average deposit being more affordable, and plenty of places to eat, shop and explore, Swansea may be the ideal location for first-time buyers looking to purchase in Wales.

  1. Wrexham: £19,867

Finally, the lowest average deposit out of all the locations compared is Wrexham. This city has been in the limelight a lot over the past few years thanks to the purchase of Wrexham AFC by Hollywood A-listers, Ryan Reynolds and Rob McElhenney. This city has lots for residents to enjoy including football matches (of course!), bars, restaurants and nearby countryside walks. Plus, it’s conveniently located on the boarder of Wales, making it easy for residents to travel to Chester, Liverpool and Manchester.

These figures have been calculated based on a 10% deposit – the minimum amount most UK banks will accept from first-time buyers.

In response to the tough market conditions, St. Modwen Homes say they’re offering a 5% Deposit Contribution incentive for first-time buyers. Gifting prospective homeowners 5% of the property value, the housebuilder says it’s hoped the scheme will allow first-time buyers to purchase a new home sooner than they planned.

Jo Winston, Sales and Marketing Director at St. Modwen Homes, says: “We’ve heard from hundreds of people who are desperate to buy their first home but feel trapped by the system.

“The cost of living crisis is squeezing people’s finances, meaning there’s barely any money left to go towards savings. And those who are able to put some money away each month are getting very little return on investment because of low savings rates. All of this makes saving for a large deposit near impossible for many prospective homeowners.

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“Our 5% Deposit Contribution has been specifically designed to make buying a new house more affordable, easier and quicker for first-time buyers. By matching the buyer’s 5% deposit, the scheme will enable homeowners to put down a 10% deposit in total, giving them access to a larger pool of mortgage lenders and a wider choice of deals.”

(Lead image: St Modwen Homes)

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