New figures that were recently released from the Principality Building Society's Wales House Price Index illustrates the rise and fall of property prices across each of the 22 local authorities within Wales during Q3 2018, which includes the months of July through to September.
The figures show that house prices in Wales have hit an all-time high, with the average price of a property now sitting at £184,722 - proving that now is a buoyant time for the majority of those selling or considering selling.
Five areas managed to achieve new record average prices - Vale of Glamorgan (£260,448), Powys (£217,265), Newport (£199,035), Caerphilly (£148,040) and Rhondda Cynon Taf (£136,189).
When it comes to annual house price rises it's a concentrated area in the south-east corner of Wales that have experienced the greatest increases, mainly due to the planned abolition of the Severn Bridge tolls which will come into effect this December. Areas within the commuter belt from Bristol have already experienced significant house price increases year-on-year, such as Monmouthshire (+11.9%), Newport (+11.1%) and Torfaen (+8.1%).
It has been said that daily commuters between Bristol and Wales will save up to £1,400 per year, and with the average house price in Bristol being £310,000 many are seeking properties across the bridge to take advantage of the lower house prices in Wales - though this increased interest and demand is now naturally driving those property prices upwards.
Tom Denman, Chief Financial Officer at the Principality Building Society stated that some fluctuation has taken place in the property market as house prices artificially dipped following the introduction of land transaction tax back in April 2018, but the most recent quarter saw those prices make a quick recovery. Despite this, overall sales volumes were down slightly (-3%) compared to last year which indicates a sense of caution remains within the market.
He went on to say that the number of first-time buyers is down slightly, and the uncertainty surrounding Brexit negotiations has resulted in many owners deciding to halt any plans to sell. He also says the buy-to-let market has experienced some decline as many landlords are put off by tax disincentives.
Since the financial crash of 2008 two local authorities in Wales have seen the rise in house prices grow faster than the Consumer Price Index (CPI), which measures the rate of inflation across the whole of the UK. Those two authorities are the Vale of Glamorgan and Cardiff, where increases of 36.4% and 31.8% are considerably higher than the CPI average of 24.2% from 2008-2018.
All in all, Wales is proving to be a country with a buoyant property market. Lower stamp duty has seen a largely positive effect across the country, and property prices in the south-east can expect continual increases in the foreseeable future once the bridge tolls are abolished. The potential impact of Brexit is still a question that remains unanswered, so like the rest of the UK, Wales and the Welsh property market will have to await the outcome.
Here at CPS Homes, we're proud to be Cardiff's largest lettings and estate agent, so if you're thinking of buying or selling within the capital, don't hesitate to get in touch with us today. You can call into any of our three Cardiff branches, call us on 02920 668585, or pop an e-mail over to email@example.com and we'll get back to you as soon as possible.