Principality Building Society’s House Price Index found the average price of a home in Wales increased to over £230,000 in the second quarter of 2024.
The data, which was published this morning, was gathered between April and June this year and spanned 22 councils in the country. Overall, the research shows the average price of a property increased to £236,369 – the first rise since December 2022.
Out of the 22 local authorities 15 reported price rises compared to the previous quarter. In particular, Bridgend and Ceredigion experienced growths of more than 16%. Although, 11 councils still saw year-on-year reductions, with Wrexham experiencing the biggest drop at 10%.
On a more positive note, the report points towards a 3.1% rise in the average house price since the previous quarter.
However, the average price remains 2.4% lower compared to the same period last year and 5% below the peak price of £249,000 in December 2022.
‘The second quarter of 2024 has brought much-needed positive news to the Welsh housing market,’ said Shaun Middleton, head of distribution at Principality Building Society. ‘After five consecutive quarters of declining house prices, we are now seeing a recovery. The picture across Wales shows that local authorities have been reporting quarterly price increases, rather than decreases, for the first time since 2022, translating into a steady rise in house prices.’
Middleton added: ‘This increase, bringing the average price to £236,369 in Wales, marks a significant turnaround and suggests that the market may be stabilising. The last few years have marked the most challenging housing market conditions since the Global Financial Crisis in 2008, with first-time buyers encountering the toughest conditions in about 70 years, according to the Building Societies Association.’
Going forward, the Welsh government have pledged to deliver 20,000 new low-carbon homes for rent within the social sector during the current term. This coincides with the new UK Labour government promising to produce 1.5 million homes in England.
Another survey that was conducted by Principality displayed that 66% of its members consider the type and size of a property whilst hunting. Detached houses were discovered to be the most popular, although transactions for flats experienced the most significant recovery, with numbers up by a third compared to the previous quarter and year.
Against this backdrop, Middleton continued: ‘With better economic conditions, increased affordability, and growing buyer interest, the second quarter may well represent a new dawn for the housing market in Wales, as we expect house prices to increase and transaction volumes to rise.’
Image: Richard Horne
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