Shankul Bhandare
According to the Principality Building Society, house prices in Wales have increased for the first time in over a year. Their regular house price index shows the average house price at £236,369. The society noted a recovery after five consecutive quarters of declining prices. However, prices remain 2.4% lower than during the same period in 2023.
The Principality Building Society reported that most council areas in Wales experienced higher house prices between April and June for the first time since 2022. However, some areas, such as Wrexham, Powys, and Merthyr Tydfil, still saw price drops.
In contrast, Bridgend’s average prices reached a new peak at £250,000. Shaun Middleton, head of distribution at the Principality, described the increase as a “significant turnaround,” indicating that the housing market might be stabilizing.
He noted that recent years have presented the most challenging housing market conditions since the 2008 global financial crisis, with first-time buyers facing the toughest conditions in about 70 years. Middleton expects house prices to rise and transaction volumes to increase, supported by better economic conditions, increased affordability, and growing buyer interest, alongside government commitments to house building and more social housing for rent in Wales.
This marks the first increase in house prices since December 2022, when the peak average price of £249,000 was recorded. Between April and June, Wales saw 10,200 transactions, reflecting a 24% rise compared to January to March and a 16% increase from the same period last year.
