House prices still rising in Wales, but general outlook less positive

HOUSE prices in Wales continued to edge upwards in April, but the outlook for the market has become more cautious.

According to the latest RICS (Royal Institution of Chartered Surveyors) residential market survey, a positive net balance of 25% of Welsh surveyors said that prices were up. However, this had eased back from plus-34% of the previous month.

Surveyors are also less optimistic about the outlook than they were, with a net balance of just plus-8% expecting prices to rise over the next three months, compared to plus-28% in March.

When it comes to sales activity, surveyors have also become less positive, with a net balance of minus-12% expecting a fall in activity for the first time since May 2016.

It would appear that this is related, in part at least, to a lack of supply in the market. A net balance of respondents, at minus-27%, said that instructions to sell (ie new properties coming on to the market) fell in April.

RICS residential spokesperson for Wales and director of Kelvin Francis Tony Filice said: “It would appear that there are regional variations in the market.

“In hot-spots like Cardiff, we are seeing increased valuations, instructions and offers received, particularly in favoured school catchment areas, for instance, where properties are selling over asking prices, with the highest demand for two to three bedrooms.”

RICS policy manager Hew Edgar said: “With the recent changes to the tax regime coming into force at the beginning of April, it is perhaps unsurprising that on balance surveyors expect sales activity to reduce in the three months ahead.

“Whilst the objective of the tax change, in wanting to support first-time buyers and those operating in the lower end of the market, is commendable, the progressively higher tax liability of middle to upper-priced houses is likely to reduce purchases in that market area, which could ultimately negatively impact activity across the housing market in Wales.”