The average house price in Wales has increased to £236,369 in the second quarter of the year, a report has found.
According to Principality Building Society’s Wales House Price Index for Q2, the average house price is below 2.4% compared to the year before but 3.1% up quarterly. This was attributed to most local authorities reporting higher prices in Q2 for the first time since 2022.
The report noted that the average house price was 5% below the peak of £249,000 at the end of 2022 and the first time that prices have increased since that time.
Transactions during the period rose by around 24% from Q1 to Q2 to around 10,200. The report added that this was up 16% on the same period last year.
The mutual said that this was the “first meaningful recovery in property sales for nearly two years”.
Principality Building Society added: “The pick-up in this second quarter has begun to diminish the downturn in house prices from the 2022 peak, and could spell a new dawn for the housing market in Wales.”
From a regional perspective, Bridgend had the largest annual increase in house prices at 11.6% with the average house price came to £250,921.
This was followed by Ceredigion at 8.8% annual growth, meaning the average house price was estimated at £281,382, and Rhondda Cynon Taf at 6.1% with the average house price pegged at £178,434.
Merthyr Tydfil reported the largest drop year-on-year at 10.5%, equal to £146,322 average house price.
Wrexham average house prices fell by 10.6% year-on-year to £199,456, followed by Powys at a 9% decrease to £245,664.
House price rise in Q2 could mark ‘new dawn’
Shaun Middleton, head of distribution at Principality Building Society, said that Q2 of 2024 had “brought much-needed positive news to the Welsh housing market”.
He continued: “After five consecutive quarters of declining house prices, we are now seeing a recovery. The picture across Wales shows that local authorities have been reporting quarterly price increases, rather than decreases, for the first time since 2022, translating into a steady rise in house prices.”
He added that around 15 out of 22 local authorities in Wales had reported average house price rises during the period.
Middleton said that in a recent survey around two thirds of Principality’s members said that the type of home and its size are the two most important factors when looking for a home, with the detached house a preference for many buyers.
“As such, with transactions increasing this quarter, detached houses are seeing a small resurgence, however this recovery is still weaker than flats, where transactions are up a third both on the quarter and the year earlier, reflecting affordability pressures elsewhere in the market,” he explained.
Middleton said that the increase in house prices, bringing the average house price to £236,369, marked a “significant turnaround and suggests that the market may be stabilising”.
“The last few years have marked the most challenging housing market conditions since the Global Financial Crisis in 2008, with first-time buyers encountering the toughest conditions in about 70 years, according to the Building Societies Association.
“Looking ahead, the new UK Labour Government is moving forward with a significant legislative move aimed at accelerating the development of infrastructure and the construction of 1.5 million homes in England, meanwhile the Welsh Government has committed to deliver 20,000 new low-carbon homes for rent within the social sector during the current term.
“Together with our insight, this suggests that the second quarter may well represent a new dawn for the housing market in Wales, as we expect house prices to increase, with a higher volume of transactions, supported by better economic conditions, increased affordability and growing buyer interest,” he added.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
