House prices have risen by 3% year-on-year in Wales, according to Principality Building Society’s Wales House Price Index for Q3 2020.
The average house price across the 22 local authorities in Wales is now £196,165.
Wales also saw growth in sale prices across the quarter by 2.2%, however the number of property sales was down by 58% between April and September, when compared to Q3 2019.
On a quarterly basis, Gwynedd saw the greatest rise in average house prices in Q3, up 14.6%.
Mike Jones, chief risk officer at Principality Building Society, said: “Although it might appear to be somewhat implausible to be reporting rising prices in the middle of a pandemic, we believe this reflects the increase in demand following the Q2 lockdown.
“It is also potentially the desire for a lifestyle change for some who during lockdown have realised that it is possible to work from home, avoiding the necessity to travel to work on a daily basis.”
Bridgend, Cardiff, Carmarthenshire, Gwynedd, Newport and Powys all reached a new record average house price, year-on-year.
Excluding Cardiff, these areas are all included in the top 11 local authorities in Wales with the highest proportion of detached or semi-detached homes, which the building society believes indicates the appeal to buyers looking for more space, as a result of the lockdown.
Jones said: “The demand for larger homes with additional space, including outdoor areas, has consequently risen, however, and with little new supply coming to the market, prices also rose rapidly.
“In terms of outlook for the market, the extension of the furlough scheme and mortgage payment deferral scheme could, in the short term, help offset the impact of weakening economic performance.
“However, many experts continue to forecast a rise in unemployment during the coming months and that will inevitably impact consumer confidence and the housing market.”
“Given the relatively low savings that can be obtained on the LTT duty in Wales, we do not consider the impact of the temporary rate will be as significant as it appears to be in England’s housing market.
“The temporary LTT holiday in Wales does not apply to second homes or buy-to-let properties, where an additional rate of three per cent remains payable.”