Average House Prices Rise In Wales

Newly released figures from Principality Building Society have shown that Wales continues to buck the trend seen across England as the average house price has climbed to reach a record peak of £191,006 over the last three months.

The data from Principality demonstrates the rise and fall in house prices across each of the 22 local authorities in Wales.

According to to the research, 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).

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%.

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.”

Positive News on Property in Wales

Business News Wales has provided the latest positive update on Welsh Property with house prices in Wales predicted to rise by 10.4% by 2022.

The predictions have been made by Global property consultants JLL who suggest a moderate rise in property prices across the UK leading towards a more stable market.

The full article is below and can also be read here

House prices in Wales are expected to rise by 10.4% over the next five years, according to predictions by global property consultants JLL.

That’s higher than prime central London where prices are predicted to grow by 8.7% between 2018 and 2022.

Whilst nationally a range of factors will deliver more moderate house price growth across the UK and lead to a more stable market, Wales – and South Wales in particular – shows little sign of slowing.

The latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey states Wales has seen the most positive price growth reported by its members, followed by Northern Ireland, the North West and the Midlands. 50% more RICS members reported having seen price increases in Wales compared with a wide majority of members in London reporting prices in their region to falling.

There are a range of factors for this positive outlook, not least the announcement that the Severn Bridge tolls will be scrapped by the end of 2018, opening up residential markets in South and South-East Wales to a host of commuters working in Bristol and the South West. Other major schemes include the electrification of the South Wales rail line which will improve links with London Paddington and the South Wales Metro scheme aiming to improve transport links across the Cardiff capital region.

This is complemented by a broadening commuter belt, agreement of Local Development Plans and the growth of agile working, with more and more people working remotely from multiple locations and from their homes.

Matthew Wright, associate director in JLL’s Cardiff office said:

“There has been a general undersupply of residential property in key Welsh conurbations for a number of years. This has started to be addressed with a number of large residential projects either mooted or already underway along key commuter links such as the M4 motorway and the A48.

“Only last month, the Severn Growth Summit mapped out opportunities for greater collaboration and investment, creating a ‘western powerhouse’ for Cardiff, Newport and Bristol similar to that seen in the North West.

“Almost a decade worth of pent up demand for development – both residential and commercial – has finally begun to find an outlet in the various major schemes now underway. As the region’s national and international connections continue to grow we anticipate this having a positive impact in terms of residential property values.”

But with these positive predictions comes a note of caution. Matthew Wright added:

“The residential market continues to be heavily influenced by changing Welsh Government policy across planning, construction and taxation; indeed, more so than any other sector of the property market. Measures such as the ‘Help to Buy’ scheme have bolstered demand however the devolution of minor taxes to Wales has brought changes to stamp duty and, potentially, a new tax on vacant land.”

Welsh Government recently announced that from April 2018, the existing Stamp Duty Land Tax will be replaced in Wales by a Land Transaction Tax, which introduces new price thresholds for residential sales.  The new regime is aiming for purchasers of houses up to £400,000 to pay the same or less than under the current scheme, with properties above this level incurring higher tax.

Welsh Government has announced its intention to introduce a tax on vacant land, similar to the Republic of Ireland model, to ‘… prevent the practice of land banking and land not being developed within the expected timescales’. Little detail has been provided as to how this will operate and how penalising the under-use of land will improve the viability of marginal sites.

Download JLL’s report here