The housing market in Wales is performing better than all other areas of the UK, according to new figures based on average annual house price growth. The Office of National Statistics (ONS) has published its UK House Price Index Summary, which suggests that property values across Wales rose by 10.7% in the year to December 2020.
Although this doesn’t suggest that property values are higher in Wales than elsewhere in the UK, it does suggest that demand is certainly rising for homes across the country. England continues to lay claim to having the highest average house values in the UK at £320,757 compared with the Welsh average of £199,113.
So, why have Welsh property values experienced such a surge in the last 12 months?
The rush of the stamp duty holiday
The Welsh Government announced a stamp duty holiday on all properties valued up to £250,000 until March 31, 2021. This will have no doubt played an impact in the decision-making of property owners considering upsizing to cater for their growing families. With not a penny to pay in stamp duty land tax, families have had the opportunity to consider buying properties that weren’t previously in their price range, helping to fuel the Welsh property market.
The Welsh Government has also confirmed that it will not be extending the stamp duty holiday beyond 31st March. Although this may disappoint some, it will certainly focus the minds of buyers, sellers, solicitors and mortgage lenders alike between now and the end of next month. Buyers will need to be selective over which mortgage lender they choose with time running out, given the disparity in approval times from lender to lender. According to Trussle’s online stamp duty calculator tool, the fastest median approval time for a lender was Halifax at seven business days. With the likes of HSBC and TSB also proving hot on the approvals aspect at 12 days apiece. This site also lists other important details for those wanting to find out more.
A changing buyers’ mindset
One growing demographic of property buyers in the Welsh market is those looking for better value for money and an improved work-life balance. Carol Peett, managing director of West Wales Property Finders, believes there is a wave of people “looking to move out of towns and cities” to more rural, countryside locations in Wales. Peett believes this is because people now know they don’t have to be “confined to living near their offices” any longer.
Subsequently, Peett says many prospective buyers in the Welsh property market are simply seeking “open spaces and fresh air” for themselves and their loved ones. It’s true that more families are reassessing what’s important to them from a work-life balance and what they actually need from a family home.
A surge in demand for second homes
Many estate agents and property marketers are also acknowledging a distinct rise in the number of buyers seeking to acquire a second home as a holiday base for years to come. With the rise of staycations likely to be embedded for some time, coastal regions such as Ceredigion and Pembrokeshire are experiencing significant interest from buyers inside and outside Wales.
More buyers are looking to skip a step or even two steps on the property ladder in search of their dream holiday homes. Wales certainly ticks the right boxes as a second home destination, with plenty of beautiful beaches and coastal scenery from north to south.