Wales bucks trend as average house price reaches new peak
Tom Denman, Chief Financial Officer at Principality Building Society
Wales continues to buck the trend seen across England as the average house price in Wales has climbed to reach a record peak of £191,006 over the last three months (July – September).
The figures have been released from Principality Building Society’s Wales House Price Index for Q3 2019, which demonstrates 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 Q3 – Bridgend (£175,144), Carmarthenshire (£166,769), Cardiff (£239,788), Newport (£202,947), Pembrokeshire (£207,561) and the Vale of Glamorgan (£277,735).
Tom Denman, Chief Financial Officer at Principality Building Society said:
“First time buyers, holiday lets and people seemingly not allowing the shadow of 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.
“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.”
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 when comparing Q3 2019 and Q3 2018, the number of sales increased by 5.6% in Wales. The figures show that the largest increase in sales in Q3 2019 compared to Q3 2018 was within terraced properties, up by 13.5% over the year, followed by semi-detached properties, up by 8.0%. Detached properties have seen a minor sales increase of 0.4% across the year, while flats have seen a decrease in sales of 15%.
For more information on house price changes in Wales visit: www.principality.co.uk/mortgages/house-price-index