Welsh house price growth falls to 0.4%

Ryan Bembridge

April 16, 2019

Annual house price growth in Wales has fallen to just 0.4%, the lowest rate since August 2013.

The typical price in Wales is now £185,018.

Tom Denman, chief financial officer at Principality Building Society, said: “As anticipated, we have seen a quarterly decline in house prices which is connected to the ongoing economic uncertainty caused by Brexit.

“House sales are up year on year, with Brexit seemingly not having the same negative effect on the number of sales that are taking place in the Welsh housing market as it has in southern parts of England, in particular.

“The South East of Wales continues to see house price growth as a result of the abolition of the Severn Bridge tolls and the widening commuter belt between Bristol and Cardiff. With political uncertainty continuing, it’s difficult to gauge whether the market will bounce back in quarter two or will continue to show signs of slowing.”

House sales are up by 6% in Q1 of 2019 compared to Q1 2018, with Principality Building Society suggesting first-time buyers are making the most of the opportunity of relatively affordable house prices in parts of Wales.

Prices fell by 0.8% in from the fourth quarter of 2018 to the first quarter of 2019.

There were 15 local authority areas in Wales where prices fell in the quarter, however they rose in the more affordable regions of Neath Port Talbot (1.9%), Blaenau Gwent (1.1%) and Merthyr Tydfil (0.5%), which Principality suggests has been helped by first-time buyers remaining keen to get on the property ladder in those areas.

Cardiff (£235,361) and Conwy (£190,125) reached new peak prices in March 2019. In Cardiff, this was driven by a rise in the prices of semi-detached properties and flats.

In Conwy, detached homes – the most frequently purchased property type in the area – saw the largest rise, up by an average of £40,000 in March 2019 compared to the year previous.

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