Wales bucks trend as average house price reaches new peak
Wales continues to buck the trend seen across England as the average house price reached a record peak of £191,006 in the three months from July to September, the latest index shows.
The figures from Principality Building Society’s Wales house prices index for the third quarter of 2019, reveals the rise and fall in house prices in each of the 22 local authorities in Wales.
House prices have risen in Wales by just over 2% both quarterly and annually, but the average house price remains approximately 40% lower than in England, where the average price is £305,000.
Six local authorities established new peak prices in the third quarter with Bridgend at £175,144, Carmarthenshire at £166,769, Cardiff at £239,788, Newport at £202,947, Pembrokeshire at £207,561 and the Vale of Glamorgan at £277,735.
‘First time buyers, holiday lets and people seemingly not allowing Brexit to deter them, means average house prices in Wales continue to buck the trend seen in regions across England. It also seems home movers are continuing to buy higher value properties and overall house sales are up compared to the same quarter in 2018,’ said Tom Denman, chief financial officer at Principality Building Society.
‘The growth in average house prices is underpinned by historically low interest rates, a shortage of housing supply and relatively high employment. It will be interesting to see if this upward trend continues for the rest of the year as Brexit negotiations reach a critical stage,’ he added.
The figures from Principality also show house prices have risen in coastal areas associated with holiday homes and holiday lets. For instance, the annual growth rate in Pembrokeshire is currently 9.6%, the second highest growth rate in Wales. Similarly, Conwy has a growth rate of 7.1%, the fourth highest in Wales with coastal property hotspots of Abergele, Llandudno and Colwyn Bay.
In terms of housing sales year on year, they increased by 5.6% in Wales. The figures show that the largest increase in sales in the third quarter of 2019 compared to the same period of 2018 was for terraced properties, up by 13.5% over the year, followed by semi-detached properties, up by 8%. Detached properties have seen a minor sales increase of 0.4% across the year, while flats have seen a decrease in sales of 15%.