House prices in Wales drop by 6.5% over past year, following continuing downward trend

  • ITV Cymru Wales' Sion Jenkins reports.

House prices in Wales have fallen for the fifth consecutive quarter, according to the latest figures released by the Principality Building Society.

Since the last quarter of 2023, the average house price has fallen by 2.1%. It means that prices are now down 6.5% when compared to this time last year.

The House Price Index stated that the average price of a home in Wales fell to £229,263 in the first quarter of 2024.

Citing the cost of living as one of the reasons, Shaun Middleton at Principality Building Society, said: "affordability continues to be a problem for buyers in Wales."

House prices hit record high in Wales but market slowdown expected

"Economic pressures, coupled with the higher cost of mortgages has meant affordability continues to be a problem for many buyers, placing undoubtable pressure on the housing market in Wales.

"The picture across Wales shows that overwhelmingly local authorities have been reporting price decreases, rather than increases, translating into another year-on-year falling of house prices."

As compared to last year, only four of the 22 local authorities reported property price increase. Flintshire saw the largest increase of 12%.

Less than 8,400 transactions were made in Wales, as number of houses being sold saw a drop in the first quarter of 2024. Credit: PA Images

Five local authorities - Carmarthenshire, Denbighshire, Merthyr Tydfill, Powys, and the Vale of Glamorgan - experienced double digit price falls between 10% and 16% when compared to 2023.

Vale of Glamorgan saw the largest fall of 15.7%.

House prices in Wales have dropped by £20,000 on the peak price of £249,000 at the end of 2022.

Less than 8,400 transactions were made in Wales, as number of houses being sold saw a drop in the first quarter of 2024.

Shaun added: "Despite what has marked the most challenging housing market conditions since the Global Financial Crisis in 2008, the latest news that inflation continues to fall - although slower than anticipated - suggests that the housing market in Wales could soon see more positive signs."

Looking ahead to the rest of the year, he suggested that this quarter may well be the lowest point in terms of house prices.

"Many economic analysts have also predicted that the Bank of England base rate has peaked at 5.25 and will fall this year.

"This assumption is prompting better mortgage deals and easing the affordability of housing. Consumer confidence is also improving, along with wage growth, as pent-up demand for housing builds."

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