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Can First-Time Buyers Afford Property in Cardiff?

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Can First-Time Buyers Afford Property in Cardiff?
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If you’re a first-time buyer, you may be wondering if you can afford a property in Cardiff. 

Cardiff is a popular area with both locals and people visiting from afar, so it’s unsurprising that the Welsh capital is a city many people consider when buying their first home.

In this guide, we’ll explain how first-time buyers can go about buying property in Cardiff, including information on the first-time buyer incentive, the right-to-buy scheme, the salary you’ll need to earn in order to buy property in Cardiff and the most affordable local areas within the city. If you’re looking to sell a Cardiff property, we’ll also provide some information on how to achieve a quick sale while not sacrificing the value of your home.

What is the first-time buyer incentive in Cardiff?

The first-time buyer incentive in Cardiff is known as First Homes Cardiff and is available to first-time buyers who live/work in Cardiff to help them get on the property ladder.

Applicants must also meet the following criteria:

  • Be over the age of 18
  • Be a current passport holder or have ‘indefinite leave to remain’ stamped on your passport
  • Be a first-time buyer ‘in your own right’
  • Be living/working in Cardiff for at least 6 months, or be a key worker moving to Cardiff for work purposes
  • Be able to meet the long-term commitment to home ownership

This incentive enables the council to match properties with suitable applicants, including both new build and resale properties. It’s important to note that the scheme is not aimed at people who can afford to purchase a property without assistance.

To apply for this incentive, applicants must provide the following information:

  • ID including passport/driving licence
  • Proof of current address such as utility bill or bank statement
  • Previous addresses (last 3 years)
  • Last 3 payslips
  • Annual salary
  • Valid Mortgage in Principle Certificate
  • Evidence of 5% deposit

Other help-to-buy schemes available in Wales include the following:

Shared Ownership

This incentive allows you to purchase a set share of a property of between 25% – 75%. You will then be required to pay rent on the remaining share.

Help To Buy

Help To Buy Wales is a shared equity loan scheme that can be used on homes up to the value of £300,000 for first-time buyers who have a 5% deposit.

Homebuy

Homebuy Wales provides a loan scheme of between 30% – 50% who meet specific requirements to purchase a property

Is the right-to-buy scheme still available in Wales?

The right-to-buy scheme was abolished in Wales in January 2019. 

It was ended to protect social housing in Wales and ensure affordable housing was reserved for those that need it most.

What salary should first-time buyers have in Cardiff?

As a first-time buyer in Cardiff, it’s important to consider your salary to ensure that you’ll be able to afford your mortgage payments and sustain these over the course of your mortgage term.

Based on a mortgage rate of 5% and a term of 30 years, we’ve included below information from Zoopla stipulating the average salaries required to live in certain areas of Cardiff. We’ve also included the average house prices in each postcode area for First Time Buyers (FTBs):

AreaRequired Yearly SalaryAverage House Price for FTBs
CF38£29,500£160,000
CF83£32,300£175,000
CF11£33,600£182,500
CF72£34,100£185,000
CF15£36,900£200,000
CF24£36,900£200,000
CF5£36,900£200,000
CF23£40,500£220,000
CF3£49,800£270,000
CF14£50,700£275,000

Banks and mortgage lenders will generally offer you a set amount of money based on your salary and credit history, so your salary will largely dictate the sort of property you’ll be able to buy.

Where is the cheapest area to live in Cardiff?

The cheapest area to live in Cardiff is Grangetown, with an average house price in the last 12 months of £207,868.  

This is an increase of 5% when compared with the previous 12 months, and most property sales were for flats.

Is Cardiff a nice place to live?

Cardiff has been voted as one of the best areas to live in the UK.

Here are some key reasons why Cardiff is considered a nice place to live:

  • Affordable – the average house price in Cardiff is £288,498, which is considerably lower than the average England house price of £306,000
  • Rural – despite being a big city, Cardiff is also home to over 330 parks and gardens which gives residents the best of both worlds in terms of city life and green spaces
  • Retail/leisure – Cardiff hosts many cultural and sporting events and is home to popular entertainment centres such as the Wales Millenium Centre and the Principality Stadium
  • Education – there are many reputable universities in Cardiff for those wishing to further their studies including Cardiff University, Cardiff Metropolitan University, University of South Wales and the Royal Welsh College of Music and Drama.

Selling A Property in Cardiff

Cardiff properties are highly popular among first-time buyers, but what’s the quickest way to go about selling your Cardiff property?

This is where We Buy Any Home comes in. As the UK’s best-rated online property buyer, we’ve helped hundreds of people sell their Cardiff properties quickly and at great prices. 

You can request a free cash offer via our website, and we’ll appoint you with a solicitor and property surveyor at our expense should you wish to sell your property with us.

Get a free cash offer for your Cardiff home to get the ball rolling on your house sale – you could have your property funds in your account within just 7 days.

Free cash offer within minutes, any condition, any location.

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