House prices in Wales drop in biggest decrease since 2009 financial crash

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The average property price by the end of 2023 was £234,000 Credit: PA images

House prices in Wales have seen the biggest decline since 2009, according to the Principality Building Society.

The average property price by the end of 2023 was £234,000, according to new figures, which shows a 6% decline from a record high during the same quarter last year.

Prices in Wales have decreased for the fourth quarter in a row with the average house price now £15,000 less than it was at the same time last year, when it peaked at £249,076. But despite this, prices are still 25% higher than they were five years ago.

When compared to the same period last year, six local authorities—Monmouthshire, Carmarthenshire, Blaenau Gwent, Torfaen, Denbighshire, and Merthyr Tydfil—all saw double-digit price decreases; Merthyr Tydfil recorded the biggest drop of around 20%.

Cardiff, Caerphilly, Gwynedd, and Anglesey were the only regions to see price increases.The Wales property Price Index for October to December 2023, which shows the rise and reduction in property prices in each of Wales' 22 local councils, has released its numbers from Principality Building Society.

Compared with a year earlier, property prices in 18 of the 22 local authorities have declined

The average house price now £15,000 less than it was at the same time last year. Credit: Principality Building Society

Shaun Middleton, Head of Distribution at Principality Building Society, said: “The housing market in Wales has been through a difficult period and given the continued squeeze on the cost of living alongside the higher cost of mortgages- as households came off much lower fixed rates - it is little wonder that some have forecast continuing price falls in 2024, followed by a recovery in 2025.

He continued: “However, there are some positive signs including lower inflation and an expectation that the Bank of England rate has now peaked at 5.25% and will fall during 2024.

"Indeed, financial markets are pricing in several rate cuts, bringing the BoE rate down to 4% later in the year. Mortgage markets have already moved, with lenders cutting rates quite significantly as competition intensifies, and we might expect that to continue.”

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