Rising house prices in Wales cause delays in purchase, even amongst HNWI first-time buyers

• More than a third of HNWIs in Wales have delayed buying their first home as house prices rise 2.6% in a year (UK average 1.9%) 

• HNWIs’ wider family are also impacted – on average, 39% in Wales say an adult family member has delayed buying their first home 
• Numbers delaying a purchase could be greater if it weren’t for the bank of mum and dad 

First time buyers in Wales are more likely to have delayed purchasing their first home than those in the rest of the UK – even amongst the UK’s high-net-worth individuals (HNWIs) – according to new data from the latest Saltus Wealth Index Report

Saltus surveyed 2,000 people with assets of £250,000 or more and discovered that 29% said they had delayed buying their first home in the past year as a result of the current financial squeeze and the response to it in the Labour Party’s Autumn budget, while 38% said an adult family member had.

But in Wales, where house prices have risen 2.6% in a year – significantly higher than the UK average of 1.9% – the number of HNWIs that say they have delayed buying their first home rises to 36%, while the number who say a family member has delayed this decision increases to 39%.

Overall, 74% of respondents say either they, a family member, or both, have delayed getting onto the housing ladder this year.

Top five regions most likely to delay (full regional table in notes)

Numbers delaying a purchase could be greater if it weren’t for the bank of mum and dad

The Saltus study also suggests that the level of delay would be even greater if it weren’t for the huge numbers of HNWIs helping their families get onto the housing ladder. According to the report, nine in ten (87%) HNW parents are providing, or have provided, some form of financial support to their adult children or grandchildren and that one in five of them (19%) are contributing towards a house deposit.

While 21% are providing this support through excess income, 28% have had to tap into their investments, and similar numbers are either taking it from their pension (17%) – if they are already retired – or reducing their pension contributions (11%) to fund the support.

Mike Stimpson, Partner at wealth management firm Saltus, commented: “These figures highlight the significant impact that rising house prices – coupled with broader financial pressures – are having, even on those who are relatively well-off. Delaying home ownership is not just a financial decision; it can also impact life choices and long-term planning.

 “Family support is also becoming increasingly important. Our study shows that nine in ten HNWI parents have supported adult children financially and that a fifth of those have helped with a house purchase. However, this level of support requires careful planning to ensure it doesn’t derail their own financial goals.

“It is vital these supportive parents balance short term needs with long term wealth planning so they can provide meaningful support while safeguarding their own financial futures.”