House prices have risen by more than 40% in some parts of Wales

According to the Principality Building Society, the average cost of a house in Wales has increased by 32.2% in the last 12 months to �115,287.

It means an average house is now worth the equivalent of more than five times the average annual earnings of people in Wales of �21,398.

Typical mortgages are set to three-and-a half times a person's salary.

The areas to see the fastest house price increases were Swansea and Bangor, with rises of more than 40%.

HOUSE PRICE INCREASES All-Wales �87,238 to �115,287 (+32.2%) North Wales �78,797 to �105,248 (+33.6%) Mid Wales �89,613 to �117,954 (+31.6%) West Wales �74,019 to �97,229 (+31.4%) South East Wales �96,354 to �123,431 (+28.1%)

The Principality's latest house price survey, to the end of March 2004, shows that the average house in Wales has risen from �87,238 to �115,287 in the last 12 months.

According to the Wales-based Principality, the average first time buyer is now in their 30s before they get on the housing ladder.

Principality Chief Executive, Peter Griffiths, said: "Contrary to predictions, property prices have continued to soar across Wales.

"We are concerned that people are finding it increasingly difficult to get onto the housing ladder and recognise the problems faced by first time buyers and people living in rural Wales in particular.

"Across Wales, and especially in rural areas, houses have traditionally been affordable compared to earnings - this is no longer the case."

The survey says first time buyers may struggle to get a mortgage

And Mr Griffiths predicted more rises to come.

"While there is evidence of a slowing down in prices in our capital city, Cardiff, we believe that house prices across Wales will continue to increase throughout the year at a higher rate than other parts of the UK.

"Segments of the Swansea and Bangor markets remain exceedingly strong and we continue to see high demand for properties in these areas."

The average cost of a home in Swansea has risen to �114,029 in the last year, up 42.9% on the previous figure of �79,807 while prices in Cardiff have risen by an average of 27.1% to �151,038.

In Wrexham, prices have risen by 35.9%, so the average home costs �107,629, while in Bangor, prices have surged by 41.4% to �101,312.