Average price of a house in Wales surges to £208,309

AVERAGE house prices in Wales are still seeing a 13% annual rise – but the rate is starting to slow, according to an index.

Typical property prices have risen 13.4% to £208,309 in Wales but that is down from the 15.3% annual rise witnessed in the first quarter of this year.

Meanwhile, the average UK house price hit a new record high in June, with prices up by 10.7% year-on-year, although this was lower than the 11.2% recorded in May, Nationwide Building Society said.

Across the UK, the average house price in June was £271,613, up by 0.3% month on month.

Robert Gardner, Nationwide’s chief economist, said: “The price of a typical UK home climbed to a new record high of £271,613, with average prices increasing by over £26,000 in the past year.

“There are tentative signs of a slowdown, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer inquiries.

“Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation, which has already driven consumer confidence to a record low.

“Part of the resilience is likely to reflect the current strength of the labour market, where the number of job vacancies has exceeded the number of unemployed people in recent months.”

Mr Gardner said that, at the same time, the stock of homes on the market has remained low, keeping an upward pressure on house prices.

“The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year.

“Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.”

Looking across the UK, Mr Gardner said quarterly figures showed a softening of house price growth in many parts of the UK in the three months to June.

“The South West [of England] overtook Wales as the strongest-performing [area] in quarter two, with house prices up 14.7% year on year, a slight increase from the previous quarter.

“This was closely followed by East Anglia, where annual price growth remained at 14.2%.

“Wales saw a slowing in annual price growth to 13.4%, from 15.3% in the first quarter.

“Price growth in Northern Ireland was similar to last quarter at 11.0%. Meanwhile, Scotland saw a 9.5% yearon-year rise in house prices.

“There was a slowing in annual house price growth in England to 10.7%, from 11.6% in the previous quarter.

“While the South West was the strongest performing region, overall southern England saw weaker growth than northern England.

“Within northern England, the North West was the strongest-performing region, with price growth picking up to 13.3% year on year, from 12.4% in the first quarter.

“London remained the weakest-performing UK region, with annual price growth slowing to 6.0%, from 7.4% in the previous quarter.”

Myron Jobson, senior personal finance analyst, interactive investor, said: “Property prices have gone up faster than wages, creating an affordability squeeze, while mortgage rates have risen to levels we haven’t seen in a while. These factors, as well as the prospect of higher interest rates to rein in runaway inflation, are likely to go some way towards taming frothy housing prices.”