According to the figures released from the society's national house price index, average house prices in Wales now stand at £186,360 after rising 4.1%.
While house price growth over the last quarter across Wales has been modest with a marginal increase of 0.1% to £186,360, house prices have risen by 4.1% annually on this time last year. This is the highest annual rate of house price growth in the four UK nations in Q2 of 2019 as England has seen a 0.1% fall in prices, with Scotland and Northern Ireland growing by 0.5% and 3.5% respectively.
Tom Denman, Chief Financial Officer at Principality Building Society, believes the increase in house prices annually in Wales is linked to the increase of sales ahead of the Land Transaction Tax in April 2018 resulting in a dip this time last year, rather than any sudden increase in housing demand in Wales during Q2 2019.
Six local authority areas established new peak prices in Q2 2019: Bridgend (£169,980), Carmarthenshire (£166,057), Gwynedd (£187,142), Neath Port Talbot (£135,924), Pembrokeshire (£204,281) and the Vale of Glamorgan (£261,450).
Principality’s report also showed a trend in the last three months of rising house prices along the coastline from Conwy, Pembrokeshire to the Vale of Glamorgan, suggesting a potentially strong demand for holiday and second homes in Welsh coastal areas.
Tom Denman at Principality said: “Average house prices rose marginally in June by 0.1% on the previous quarter. The recent trends in Wales show the market has been resilient in the face of political and economic uncertainty. It would appear there is a trend of rising house sales on the coast of Wales, perhaps indicating more sales of holiday lets.
Housing market trends are likely to continue to mirror what is happening in the broader economy. Cost of borrowing remains historically low, while the labour market is relatively healthy. People will no doubt be looking for some clarity around Brexit during the next quarter, which is likely to determine the confidence to buy and sell properties.”
