Swansea is, like the whole of the UK, currently experiencing a cost-of-living crisis, a challenge that spans housing, commodities, and other essential services. The housing market, a key component of Swansea’s local economy, paints a complex picture of varying property prices, escalating demand, and individuals grappling with these challenges.
The current situation underscores a need for housing support for some residents. In this blog we will delve into the support available in Swansea and the demand for it, to provide a comprehensive view of the housing scenario in this charming Welsh city.
Demand for Housing in Swansea
Despite Swansea’s minimal population growth, (in fact, the area saw a 0.2% decrease in population from 2011 to 2021) the demand for property in the region remains high, which is why prices have risen 3% in a year and 16% since 2020. This is largely due to Swansea’s standing as the second most populated region in Wales, so Swansea maintains a position as a desirable location for property buyers. This heightened demand, despite slower population growth, underscores the enduring appeal of Swansea’s property market which is good news for sellers, but not as good news for people looking to move into the area, as demand means prices are remaining high.
The Cost of Housing in Swansea
To understand the Swansea market, it is important to look at the overall picture in not only Wales but the UK as a whole.
In the UK, house prices shot up by 5.5% in the past year, rising to £288,000, up £16,000 versus the previous year. This may seem a lot but growth has slowed considerably thanks to higher mortgage costs and inflation amongst other factors.
In comparison, Swansea’s property market has remained relatively stable, with average property prices reaching £201,800 in the past year, making a home here nearly £90,000 cheaper than elsewhere. Despite Swansea’s average house prices being lower than the UK average, the housing market continues to thrive.
But what are people buying in Swansea and how does it differ between property types?
- The majority of sales were terraced properties, which sold at an average price of £149,507, reflecting the popularity of these homes among first-time buyers, investors, and small families.
- Semi-detached properties, offering more space and often coveted by growing families, fetched an average price of £205,764.
- Detached properties, usually larger homes that attract individuals seeking more space and privacy, had an asking price of around £317,422 on average.
- When it comes to flats, price ranges from as low as £49,000 for a 3rd-floor studio apartment in Swansea City Centre to a high-end £495,000 apartment in the Mumbles. On average, the price for a flat in Swansea currently sits at around £141,000. With lots of issues facing flat owners such as cladding or lack of buyer demand, you could sell flat fast to a cash buying service if you want to get a deal done quickly.
Cost of Living in Swansea
In Swansea, as in many parts of the UK, a cost-of-living crisis is increasingly affecting individuals and families, making it difficult for some to meet the costs of housing. For those finding it challenging to cover housing expenses, support is available through the Housing Benefit scheme, which is based on the Local Housing Allowance rate.
The Local Housing Allowance takes into account the number of bedrooms a household requires, with the potential benefit amount set by this need, rather than the rent cost or number of bedrooms in your current property. The system accounts for various household compositions, from adult individuals and couples to families with children, lodgers, or boarders. Special provisions exist for those providing regular overnight care, foster carers, and families with adult children in the armed forces.
However, it’s important to note that for single claimants under 35, the type of property deemed appropriate under the system is shared accommodation, unless certain exceptions apply, such as disability status.
The Local Housing Allowance rates in Swansea currently range from £62.50 per week for a shared room to £165.70 for a four-bedroom property. Although the scheme recognises larger families’ needs, the allowance is capped at the four-bedroom rate.
This support aims to alleviate the cost-of-living crisis’ impact, especially in housing, for those in the greatest need. The ability to access this assistance can significantly influence a household’s financial stability and well-being during these challenging times.
Swansea’s housing market, although set within the broader context of a cost-of-living crisis, is characterised by high demand, robust price growth, and a broad range of property types catering to diverse tastes and budgets. Despite a marginal decrease in population, the demand for property in the city has remained high, demonstrating its attractiveness as a location for residents and investors alike.
The varied housing stock in Swansea caters to different buyer needs, from terraced houses popular among first-time buyers and small families to semi-detached and detached homes that offer more space for growing families. The city’s flat market also provides diverse opportunities for investors and residents, with prices ranging widely based on the property’s location and amenities.
How We Buy Any Home Can Help
As we continue to navigate the complex landscapes of the housing market and the wider economy, it’s crucial to recognise the need for support mechanisms for those facing housing affordability challenges. This ongoing exploration of the Swansea housing market provides us with a nuanced understanding of these dynamics, demonstrating the city’s enduring appeal and the need for sustainable strategies to ensure housing affordability for all residents.
If you’re grappling with mounting bills and financial stress, or are stuck in an unsellable flat due to negative equity or cladding issues, you could sell flat fast for cash. We Buy Any Home offers a fast and efficient service, promising to purchase all types of property in as little as seven days. Not only could this provide immediate financial relief, but it also could help you avoid potential home repossession. With a trustworthy track record and commitment to customer satisfaction, We Buy Any Home is ready to help you navigate your financial challenges and secure a more stable future.