Residential property prices in Wales increased by 4.1% on an annual basis in the second quarter of 2019, taking the average house price to £186,360, the latest lender index shows.
Quarter on quarter prices increased marginally, by just 0.1%, while sales fell by 0.1% compared with the second quarter of 2018, according to the index from the Principality Building Society.
Tom Denman, chief financial officer at Principality Building Society, pointed out that the increase in house prices annually in Wales is linked to the increase of sales ahead of the Land Transaction Tax introduction in April 2018 resulting in a dip this time last year, rather than any sudden increase in housing demand in Wales during the second quarter of 2019.
Six local authority areas recorded new peak prices in the second quarter with prices in Bridgend reaching £169,980, in Carmarthenshire £166,057, in Gwynedd £187,142, in Neath Port Talbot £135,924, in Pembrokeshire £204,281 and the Vale of Glamorgan at £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.
‘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,’ said Denman.
‘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,’ he added.
