House Prices in Wales Rise as Market Activity Grows
House prices in Wales are climbing at their fastest rate in more than six months, with both buyers and sellers showing increased activity in January, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
The survey revealed that a net balance of 10% of respondents reported rising house prices, the highest level recorded since March 2024. This marked a slight increase from the 8% net balance reported in December 2024.
Growing Demand and Supply
New buyer enquiries continued their upward trend for the fourth consecutive month. A net balance of 11% of Welsh survey respondents noted an increase in demand, up from 9% in the previous survey.
The supply side also saw improvements, with a net balance of 17% of respondents in Wales reporting a rise in new property listings. With both demand and supply increasing, newly agreed sales also rose. A net balance of 15% of respondents noted a sales increase in January, up from 10% in December.
Outlook on Sales and Prices
Despite the current growth in market activity, future expectations for house prices remain uncertain. A net balance of -20% of Welsh respondents anticipate that prices will decline over the next three months, a sharper downturn from the -12% recorded in the previous survey. However, the outlook for sales remains positive, with a net balance of 14% of respondents expecting sales to rise in the coming three months—marking the third consecutive month of optimistic projections.
Trends in the Lettings Market
The lettings market in Wales continues to experience high demand, with a net balance of 20% of respondents reporting an increase in tenant demand. However, the supply of rental properties has not kept pace, with landlord instructions remaining stagnant. As a result, rents are expected to rise, with a net balance of 20% of surveyors predicting rental price increases in the next three months.
Industry Insights
Commenting on the property market, Anthony Filice, FRICS of Kelvin Francis Ltd. in Cardiff, noted: “We are seeing increased activity in instructions and viewings, including in the higher price ranges. Sales at the upper levels are being agreed where vendors are taking a realistic view on price. A higher number of first-time buyers are registering too, as stock being sold off by landlords is becoming available.”
On the rental sector, Paul Lucas, FRICS of R.K. Lucas & Son in Haverfordwest, observed: “Demand for letting properties remains high and far outweighs supply. This has been exacerbated by private landlords leaving the market due to new lettings legislation. We anticipate that this will continue until private landlords are incentivised to re-enter the market.”
National Market Trends
On a broader scale, RICS Head of Market Analytics, Tarrant Parsons, highlighted the effects of economic conditions on the housing sector. “The latest survey feedback indicates that growth in buyer demand lost a bit of momentum through the early part of the year, with this flatter picture likely linked to the turbulence seen across money markets in the first half of January,” he said. However, he remained optimistic about near-term sales activity, citing easing mortgage interest rate pressures as a potential boost for the market.
With house prices rising and both buyers and sellers becoming more active, the Welsh housing market appears to be experiencing a resurgence—though the future trajectory of prices remains uncertain.
