Thursday, March 4, 2021
Real EstateUK

Average house prices in Wales reach record high of £209,723

house prices

Property prices have risen by 8.2% across the country which is the strongest annual growth in 15 years

According to Principality Building Society, the average house price in Wales has reached a record high of £209,723.

Property prices have risen by 8.2% across the country year-on-year – the strongest annual growth in 15 years.

Moreover, a third of local authorities recorded a double-digit percentage increase in property prices.

Overall, 18 local authorities reached a new record high in the average house price.

The price of detached houses have risen the most, gaining 11% compared with a year ago.

On an annual basis, average house prices in Anglesey grew the most, rising by 16% to £237,782.

Anglesey was followed by Conwy, where prices rose by 13.7%, with average house prices reaching £224,068.

On a quarterly basis, the strongest rise was seen in Merthyr Tydfil, where prices rose by 18.2% to £147,687.

The place with the lowest annual rise was Bridgend, where prices rose by 1.6%, and the region also noted the only decline on a quarterly basis, dropping by 4.1%.

As a result, average property prices in Bridgend were £183,721.

Overall transactions fell by 21% in 2020 compared with 2019.

Tom Denman, chief financial officer at Principality Building Society, said: The strength of the housing recovery in the second half of 2020 is striking. This reflects both the stimulus provided by the Welsh government in terms of the time-limited land transaction tax holiday, the pent-up demand which built up during the first lockdown, and the race for space to buy bigger properties with larger gardens.

In Q4, all local authority areas were reporting house prices higher than a year earlier. This increased demand has been driven by increased savings in many households during the lockdowns coupled with continued historic low mortgage rates, Denman said.

There has probably been some additional demand from buyers across the border with England, with house prices more affordable in Wales in relative terms, he said.

Denman said, the recent UK HM Treasury review of independent forecasts for 2021 showed wide divergences in house price expectations for the year. With so many unknowns it is impossible to offer a forecast with any reasonable accuracy. However, once there is more clarity on the containment of the virus and on the full re-opening of the economy, it will become easier.

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