CML figures found the number of first-time buyers (FTBs) in the Principality hit its second-lowest level since the recession of 1991, with 4,300 homes going to FTBs in Q3 2006.
Speaking at the CML Cymru conference, CML chairman, Mick McGuire, insisted tackling affordability was a critical factor in determining future growth within the Welsh economy.
McGuire said: “It is clear that affordability is the key issue in the Welsh housing market. With fewer FTBs managing to get on the property ladder, the CML urges the Welsh Assembly to look at innovative ways of helping those people who want to become home-owners to do so. This could be done by encouraging low-cost home-ownership or by expanding the HomeBuy scheme.”
The CML also claimed Wales had a backlog of demand on its housing stock, with 33,000 new homes required to meet this backlog alone, on top of the 8,600 homes needed every year.
This contributed to Welsh FTBs paying their highest ever income multiple in Q3 2006, with buyers on average borrowing 3.15 times their income.
Sian Brown, national sales manager at Trustguard Credit Services, commented: “I don’t see property prices coming down as there are lots of regeneration projects going on. The CML is right that incomes don’t match prices in Wales but many lenders are now using affordability calculations, which helps.”
