Housing Market Shows Recovery in WalesHousing Market Shows Recovery in Wales House prices in Wales have witnessed a rise in the second quarter of 2024, according to the Principality Building Society’s Wales House Price Index. The average price reached £236,369, the first increase since December 2022. Quarterly and Annual Trends Compared to the previous quarter, there was a 3.1% increase in house prices across Wales. Most local authorities reported higher prices, with 15 out of 22 showing increases. However, compared to the same period last year, the average price remains 2.4% lower. Market Recovery Shaun Middleton of Principality Building Society attributed the recovery to positive news in the housing market. Local authorities are reporting quarterly price increases, indicating a steady rise. Transactions have also increased by 24% compared to the first quarter of 2024. Detached houses have experienced a small recovery, while transactions for apartments have increased significantly year-on-year. Impact of Affordability Despite the recovery, the average price in Wales is still below the peak of £249,000. Affordability remains a concern, as buyers prefer detached properties but face challenges in finding them within their budget. Government Initiatives The UK government is aiming to accelerate infrastructure development and build 1.5 million homes in England. The Welsh government has also committed to delivering 20,000 new low-carbon social housing rentals. Outlook and Support Principality Building Society predicts that house prices will continue to rise. The improving economic conditions, increased affordability, and growing buyer interest contribute to this outlook. The organization encourages prospective homeowners to consider property type and size as important factors in their search. It also offers support to members through its mortgage services and website: www.principality.co.uk/mortgages/house-price-index.
Aberdaron. Image by Llywelyn2000 (CC BY-SA 4.0).
The average price of a property in Wales rose to £236,369 in the second quarter of 2024. This is the first time prices have risen since December 2022, when the average price peaked at £249,000.
The figures come from the Principality Building Society’s Wales House Price Index for the second quarter of 2024 (April-June), which shows the rise and fall of house prices in each of the 22 local authorities in Wales.
Principality’s report shows that the average house price in Wales has risen by 3.1% since the previous quarter, as most local authorities reported higher prices in the second quarter for the first time since 2022.
The average price of a house in Wales is still 2.4% lower than the same period last year and 5% below the peak price of £249,000.
Recovery
Shaun Middleton, Head of Distribution at Principality Building Society, said: “The second quarter of 2024 has brought much-needed positive news to the Welsh housing market, with house prices now seeing a recovery after five consecutive quarters of falling house prices.
“The picture in Wales shows that local authorities are reporting quarterly price increases rather than decreases for the first time since 2022, translating into a steady rise in house prices.”
Across Wales, 15 out of 22 local authorities reported price increases compared to the previous quarter, with Bridgend and Ceredigion recording double-digit increases of over 16%. Year-on-year, 11 local authorities still reported declines, with Wrexham experiencing the largest drop of 10% compared to the same period the previous year.
There were 10,200 transactions in Wales in Q2 2024, up 24% on Q1 and 16% on the same period a year ago. This represents a growth area as quarterly transactions have been falling continuously since the end of 2021.
A recent survey found that 66% of Principality members consider property type and size to be the two most important factors when looking for a home, with many buyers preferring a detached property.
Transactions have increased this quarter, with detached houses seeing a small recovery. However, this recovery is still weaker than apartments, where transactions have increased by a third quarter-on-quarter and year-on-year. This reflects the pressure on affordability elsewhere in the market.
Turn around
Shaun continued: “This increase, which takes the average price in Wales to £236,369, marks a significant turnaround and suggests the market may be stabilising.
“Recent years have seen the most challenging housing market conditions since the global financial crisis in 2008, with first-time home buyers facing the toughest conditions in around 70 years, according to the Building Societies Association.
“Looking to the future, the new UK Labour government is pushing ahead with a major legislative step aimed at accelerating infrastructure development and building 1.5 million homes in England. Meanwhile, the Welsh Government has committed to delivering 20,000 new low-carbon social housing rentals during the current term.
“Together with our insights, this suggests that the second quarter could herald a new era for the Welsh housing market as we expect house prices to rise, with increased transaction volume supported by improving economic conditions, greater affordability and growing buyer interest.”
Principality Building Society, a mutual organisation owned by customers rather than shareholders, aims to support and build a new generation of savers and homeowners. For more information visit: www.principality.co.uk/mortgages/house-price-index.
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