RAPIDLY-increasing house prices in Newport and Gwent could risk young people being priced out of the housing market, an AM has claimed.

As the Argus has previously reported, news the tolls on the Severn bridges will be scrapped by the end of the year has caused the region’s housing market to surge, with people living and working in Bristol buying houses in south Wales, where property is significantly cheaper than on the other side of the estuary.

But, as a result, house prices have rocketed by 4.7 per cent in the last year alone, with the average home in Newport now more than £185,000, while the number of available properties has plummeted as a result.

And, speaking in the Assembly, Newport West AM Jayne Bryant raised concern over the trend.

“With the removal of the Severn bridge tolls fast approaching, and people moving from Bristol and Cardiff to Newport, increasing rents and house prices continue to put a real strain on young people and families,” she said.

“Consequently, there's a real risk of young first-time buyers being priced out of the market.”

Responding, first minister Carwyn Jones said there are a number of schemes in place helping younger people get onto the housing ladder, but there was also an issue with the number of available homes. He added bringing empty homes back into use, as well as the availability of shared equity schemes could also increase the availability of property.

Conservative AM David Melding said the problem was also down to house prices outstripping earnings, saying the market needed "a complete change, starting on the supply side".

“Since March 2018 the average house price in Wales is now over £181,000,” he said. “That's between six and seven times the average income.

"That's why we have a housing crisis.

“It's not your fault in particular – it's all of us who have been active in politics for the last 25 to 30 years.”

Mr Jones replied: "Prices will go up, but it's making sure they don't go up at an astronomical rate, and that means increasing the supply, but making sure that the supply properly matches the demand that's there.

"There's no point increasing the supply of high-end housing if the market isn't going to help those people who are at the lowest end of the income scale, which is why I've always emphasised the fact that, yes, we need social housing, yes, we need to make sure that there is more good private rented accommodation, yes, we need more houses for purchase.

"But we also need to look at other ways in which people can get a stake in property without having to buy a house outright, which would be beyond them financially."