The housing market in North Wales is experiencing a significant amount of activity. Estate agents from the region have reported that, due to a big demand for properties and a lack of properties on the market, some houses are selling in a matter of hours.
As soon as a prime property goes on the market, estate agents say they are inundated with requests, and bidding wars are becoming more common. Asking prices are being met and even exceeded on a more regular basis, and it’s rare to see a property sit for any number of days, without an offer being made.
Another factor driving the market is the Land Transaction Tax (LTT) holiday which is currently in force until the end of June. Currently, buyers can enjoy zero LTT on prices up to GBP 250,000, meaning there are big savings to be had for those buying property in Wales. Many buyers are rushing to close before the holiday ends, shortening closing times and giving property owners more cash to play with.
Average Property Prices
The average house price in North Wales is currently GBP 196,357. This is significantly below the UK average which has increased by 5% to GBP 381,277, so nearly double North Wales. Selling times have also been reduced to an average of 18 weeks across the UK, based on how long it took to reach the ‘sold subject to contract’ stage.
2020 was a year that saw prices increase across several postcodes. Llansannan in Conwy County was the most expensive postcode with an average price of GBP 310,000. In particular, the town of Denbigh and its’ surrounding villages such as Bylchau and Llanefydd had several high-value homes.
Another prime area was LL16 which covers Denbighshire, Flintshire, and parts of Wrexham. In the villages of Llandegla and Llanfynfydd, prices reached an average of GBP 310,000 the same as neighbouring Llansannan.
The Lower End of the Scale
Source: Pixabay
The cheapest postcode on the list was the small village of Fairbourne in Gwynedd where the average property went for just GBP 85,500. These low prices are due to the fact it’s situated on the coast and is at risk of rising sea waters. It’s believed much of the area will be evacuated in the next few decades as the Welsh government said they cannot afford to keep reinforcing the sea defences. Properties and much of the surrounding area will be completely submerged and at the mercy of the sea.
Prices were also low in the Snowdonia National Park, in the villages of Blaenau, Llan Ffestiniog, and Trawsfynfdd. The value of properties here is mainly due to a lack of local employment opportunities following the collapse of the slate sector. Some new firms have opened up recently so it’s expected prices will rise.
The state of the property market in North Wales is positive. Other factors such as increased numbers of staff working from home and a general interest in more rural areas mean that previously overlooked regions could become more popular. This will generate income for local communities, increase prices, and help to rejuvenate some of North Wales’s shrinking towns and villages.
If things continue in this vein, it could be that we see more people putting their properties up for sale. The current shortage is creating a somewhat inflated situation, and while this is good for estate agents and sellers, it may not be sustainable. North Wales needs steady and sustainable growth that will support local people, encourage investment, and provide much-needed cash injections into the local community and economy.