House prices in Wales soared more than anywhere else in the UK during the last four years: +29% between March 2020 and March 2024.
Average property prices were at £199,249 in March 2020 and reached £256,499 as of March 2024. In the last 12 months, the average asking price in the UK has grown just 0.8% to £368,118, demonstrating a rather slow recovery in the UK property market since the sluggishness of 2023.
Demand among prospective homebuyers across Wales had almost approached a three-year high in March. The Royal Institution of Chartered Surveyors (RICS) published its latest Residential Market Survey. It showed the rate of new homes listed for sale had soared. In fact, demand had reached its highest point in Wales since mid-2021.
The RICS said this was the fourth successive month of positive growth in new buyer demand in Wales. In March, there was a net rise of 40% in the number of instructions for new sales. That’s up from 32% on the previous month. The report showed surveyors anticipate a net rise of 45% in home sales during the next year.
What’s the picture in the Welsh capital?
In Cardiff, average property prices have grown 11% between 2021 and 2024. That’s according to We Buy Any Home in Cardiff, which is a cash buyer of residential property in Cardiff and other leading towns across the UK. Cash buyers such as these look to simplify the process of selling property, especially in times of economic uncertainty. They do so by paying a fair price without the additional expense of legal and estate agent fees. Home sellers receive their funds in as little as seven days.
According to Nationwide, house prices in Wales were up 1.3% year-on-year in Q1 2024. This was due to easing swap rates. With demand returning in Wales, prices are now approximately 3.6% below the peak of the market in late 2022.
Exploring Welsh property prices from a regional perspective
The Land Registry price index suggests price growth differs at a regional level in Wales. In Blaenau Gwent and Ceredigion, annual price growth was 2.7% and 1.6% respectively. This is for the year to November 2023. During the same period, there were some sizeable falls in property values. In Gwynedd and Merthyr Tydfil, property prices plunged as much as 8.6% and 7.9%.
There is no doubt that a strong, in-demand property market is indicative of a rebounding economy. Therefore, positive figures surrounding the Welsh market will give businesses across the nation confidence that things are heading in the right direction.
The previous few years have taken their toll on the Welsh housing market. Buyers have grown cautious, but there are signs that confidence is returning and mortgage affordability is surely the next step to turbocharge the UK property market as a whole.
All eyes remain firmly fixed on the Bank of England. Its battle to tame inflationary pressures in Wales and the rest of the UK wages on. If core inflation and wages remain constrained and show little signs of life, the projected interest rate cuts could light the bluetouch paper for the property sector.