House prices jump £27k a year in Wales

THE average Welsh house price has jumped by nearly £27,000 in the space of the year to a new record level.

The 14.4% rise – from just over £185,000 to £212,000 – was the biggest percentage rise of the UK’s nations.

Across the UK as a whole, prices rose by £32,000 in May – a 12.8% annual rise, accerlerating from a 11.9% increase in April.

This pushed the typical UK house price to £283,000 in May, which was £32,000 higher than a year earlier, the Office for National Statistics (ONS) said.

Property values in Wales, England and Scotland all hit new record levels in May.

While Wales led the pack in terms of the percentage annual rise, the average house prices increased over the year in England to £302,000 (a 13.1% annual increase), in Scotland to £188,000 (11.2%) and in Northern Ireland to £165,000 (10.4%).

Within England, London had the lowest annual house price growth at 8.2%. However, London’s average house prices remain the most expensive of any region in the UK, with an average price of £526,000 in May.

The ONS also released rental price figures, showing that private rental prices paid by tenants rose by 3.0% in the 12 months to June, up from 2.8% in the 12 months to May.

Private rental prices grew by 2.9% in England, 1.9% in Wales and 3.5% in Scotland in the 12 months to June.

ONS house prices statistician Ceri Lewis said: “Annual house price inflation edged up again, with the strongest rises seen in Wales.”

The house and rental price figures were released as Britain’s rate of inflation surged to a fresh 40-year high, as rocketing fuel and food prices drove it closer towards double figures.

Consumer Prices Index (CPI) inflation rose to 9.4% in June, up from 9.1% in May and remaining at the highest level since February 1982.

Karen Noye, a mortgage expert at Quilter said: “With the Bank of England expecting inflation to peak at around 11% later this year, a 50 basis points rate hike could well be on the cards at the (Bank of England’s) next monetary policy meeting.

“If this is the case, people’s spending power will be reduced and the already dwindling number of cheap mortgage rates will quickly disappear.

“A dip in demand could see a slowdown in the housing market over the coming months, and we could see a reversal of prices coming into the autumn when the true scale of the energy crisis unfolds.

“The UK continues to face a severe financial problem and the housing market will face its biggest challenge yet as the costof-living crisis takes hold.”