Mortgage prices in Powys have risen by over 40 per cent in the last five years - potentially pricing new homeowners out of buying a property in the county, according to a recent government study.
The Office of National Statistics (ONS) has released the most recent data on the cost of mortgages across the UK, which shows that the costs for new homeowners has risen dramatically since the end of 2017.
The data shows that in Powys the costs for someone who wants a mortgage for a detached property has on average gone up by 46 per cent – with the average cost soaring from less than £250,000 in December 2017 to £349,000 in in December 2022.
The data is based on a combination of rising house prices and increasing interest rates on a national scale.
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Semi detached properties have had a similar rise of 45 percent, rising from less than £150,000 to £230,000 by the end of last year.
Terraced properties have also shot up in value at a similar rate – costing 43 per cent more than they did five years ago – with the average now costing £178,000.
However, those in the county looking to buy a flat have seen less dramatic rise, with an increase of 25 per cent to £104,000.
According to the study, the situation in Powys reflects a bleak national market – mainly due to the dramatic increases to costs in the last 12 months.
In the study, the ONS said: “Monthly repayments on newly issued mortgages have increased significantly over the past year because of rising interest rates increasing the cost of borrowing.
"House prices were 9.8 per cent higher in December 2022 compared with a year earlier.”
The news comes after another recent study by the ONS found that more than 1.4 million households in the UK are facing the prospect of interest rate increases when they renew their fixed rate mortgages in 2023.
They also found that these costs are being passed on to renters.
A recent survey found that around a quarter of all renters surveyed between December 7 and 18 2022, reported their rent payments had gone up in the last six months.
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