When it comes to taking our first step on to the property ladder, location is often key - the more value you can find in any given area, the more choice you will have.
This is where Zoopla can help. Our latest data examines average house prices to show exactly how much a first-time buyer needs to earn and save for a deposit to buy a home in south Wales.
This means that if you’re thinking about moving to Cardiff, our map, below, shows you the postcode areas that are most affordable.
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Quick stats about Cardiff:
The average first-time buyer property (two-to-three-bedroom house) in Cardiff costs £196,576 with the average deposit required being £21,446.
Average income required from a first-time buyer household in Cardiff is £43,782.
The most affordable area is CF3, which sits to the north east of Cardiff city centre and contains Rumney, Llanrumney, St Mellons, Castleton and Marshfield. The average house price for first-time buyers in the area stands at £163,585, requiring a deposit of £11,668 and a household income of £36,434.
If you’re looking to buy in the centre of Cardiff, try CF10, which also contains Butetown and part of Cardiff Bay. The area is home the Principality Stadium, which hosts sporting events such as the Six Nations and live concerts from artists including the Spice Girls and Take That.
The most expensive options for first-time buyers can be found in Lisvane (CF14) and the surrounding area, which includes Whitchurch, Thornhill, Heath and Llanishen, where the average price is £253,534.
| Postcode | Area | Average house price | Average deposit required | Average household income required |
|---|---|---|---|---|
| CF3 | Rumney, Llanrumney, St Mellons, Castleton, Marshfield | £163,585 | £17,847 | £36,434 |
| CF10 | City centre, Butetown, Cardiff Bay | £182,077 | £19,865 | £40,553 |
| CF24 | City Century, Cathays, Roath, Plasnewydd, Splott, Adamsdown | £182,978 | £19,963 | £40,754 |
| CF5 | Fairwater, Danescourt, Llandaff, Ely, St Fagans, Vale of Glamorgan | £184,164 | £20,092 | £41,018 |
| CF11 | City centre, Grangetown, Canton | £191,264 | £20,867 | £42,599 |
| CF23 | Llanishen, Cyncoed, Pentwyn, Penylan, Pontprennau | £201,453 | £21,979 | £44,869 |
| CF15 | Pentyrch, Tongwynlais, Taffs Well & Nantgarw | £213,551 | £23,298 | £47,563 |
| CF14 | Birchgrove, Whitchurch, Thornhill & Lisvane, Llandaff North, Llanishen | £253,534 | £27,661 | £56,468 |
How have we calculated it?
By looking at the average price of two-to-three bedroom homes, the most common type of property purchase for first-time buyers in Cardiff.
We've then taken the average mortgage advance from lenders in the area and worked out both the average deposit required and the amount that needs to be earned based on buyers being able to borrow up to four times their salary.
How can I afford a home as a first-time buyer?
One of your top priorities as a first-time buyer should be to build as big a deposit as possible. This will allow you access to better mortgage rates, as you will be borrowing a lower percentage of the overall value of the property.
Try to aim for a 10% deposit at minimum. It is possible to put down a deposit of just 5% in some cases, but this means paying a higher interest rate on your loan - and therefore costlier monthly repayments.
If you need help building a deposit, the Government has dedicated Help to Buy schemes available. The Equity Loan scheme, where the Government chips in by lending you 20% of the purchase price interest-free for the first five years could also be an option, but it is only available on certain properties.
Provided you have a solid credit score, banks and building societies will lend up to an average of four times your salary. If you are buying as a couple, you can combine your incomes to help increase your borrowing power.
By getting to grips with how much you can borrow and what you can put towards your deposit, you should then be able to assess what you can afford to spend on a home. You can then start your search.
Don’t forget that when buying a home, that there are other costly fees that will pop up along the way, including solicitor and moving costs. Fortunately, stamp duty land tax is waived for first-time buyers on the first £300,000 of their purchase.
For more help purchasing your first home, read our first-time buyers guides here.
First-time buyer affordability in Wales
If affordability for first-time buyers in and around Cardiff still seems stretched, then you can branch out your search into the rest of Wales.
The country contains several areas where borrowing for four times average earnings or less is more achievable.
If you want to try a different coastal city, then along the M4 to parts of Swansea such as SA9, SA6 and SA1 should fit the bill.
You’ll typically need an income of £24,224 to buy a two-three-bedroom home in SA6, which includes Plasmarl, Morriston, Clase, Cwmrhydyceirw and Clydach.
The large town of Merthyr Tydfil sits just outside the Brecon Beacons National Park, with both CF47, CF48 postcodes offering affordable options for first-time buyers.
Port Talbot, just 10 miles outside of Swansea should also appeal to those looking to get on the property ladder without over extending their budgets. Average asking prices for property stand at £91,362 in SA13 and at £101,511 in SA13.
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First-time buyer affordability in the UK
If you're prepared to cast your search further afield, then our first-time buyer affordability map of the UK, will help. Outside of Wales, there are still plenty of areas where those with household earnings of under £30,000 can take a first step on the ladder.
It's also worth noting that while the UK-wide map might provide a helpful overview, the property market varies on a far more local level and you really need to take a closer look at specific locations, like we've done with Cardiff, above to seek out value.
Full methodology: House prices taken from a subset of Zoopla-partner Hometrack's stock valuation database (one-to-two beds for London and two-to-three bedrooms for rest of UK). Median price calculated as of June 2018. Median advance taken by region (c75% for London, c85% outside of London) from UK Finance. Term of Mortgage: 25 years. Interest rate: 2.00%. Loan to income ratio: 4.0. Earnings required for affordability is greater of those required to satisfy loan-to-income threshold or income required to service the mortgage.