Mixed fortunes across Wales for house prices
AVERAGE house prices in parts of Wales have surged in the last 12 months, with one of west Wales’ beauty spots fairing particularly well, latest figures have revealed.
The average house price in Pembrokeshire has risen by more than 10% – the biggest annual change of any local authority in Wales, according to the latest Principality House Price Index.
Anglesey (8.6%), Newport (5.1%), Gwynedd (4.7%) and Blaenau Gwent (4.3%) have all seen big annual jumps too.
However across the whole of Wales, the picture is quite different.
Figures state the average house price has increased by just £1,375, or 0.8%.
This annual rate is the lowest seen since August 2013 with the growth in average house prices slowing as the momentum in the housing market eases.
House prices in Q2 2017 are 2.1% lower than in Q1 2017, indicating that the market may be slowing down.
During the second quarter of the year a degree of uncertainty has pervaded the housing market of Wales.
Tom Denman, chief financial officer at Principality Building Society, said: “In general terms the housing market tends to adopt a cautious attitude when the future direction of the economy becomes uncertain.
“We can therefore expect to see further fluctuations in housing sales and prices, as potential purchasers weigh up the pros and cons of making what is one of the largest investment decisions of their lives.
“The cost of living is rising, which means that consumers need to spend more just to maintain their current standard of living. This is a significant extra pressure for those who are saving for a deposit.
“Mortgage rates, however, remain at historic lows and the market is highly competitive for those who do choose to purchase, whether for the first time or to move up the market.”
According to Principality the quarter on quarter fall in house prices is a further indicator of the softening in the current market.
Eight local authorities have seen a fall in annual house price growth over the last year.
Torfaen, Cardiff, Vale of Glamorgan, Rhondda, Neath and Port Talbot, Carmarthenshire, Wrexham and Flintshire all saw a drop.
Sixteen of the 22 local authorities have seen a fall in house price growth during the last quarter.
The six seeing a rise are Torfaen, Blanaeu Gwent, Bridgend, Pembrokeshire, Denbighshire and Conwy.