PROPERTY MARKET IN WALES – LAST QUARTER

The property market across the UK has experienced a slowdown in recent months, with average house prices in Wales falling by 2.7% according to land registry data. The average house price in Wales is now £215,000 down from £221,000 in September 2022. Land registry data is always published 3 months in arrears, meaning these figures only take us to September. It’s important to note, these figures also vary by area, with Blaenau Gwent seeing a 11.2% drop in prices. Despite all this, we’re still selling properties in numbers not too dissimilar to last year but with a different mix of properties.

So, what’s happening?

• Rising interest rates: The Bank of England has been raising interest rates in an effort to combat inflation. This has made it more expensive to borrow money, which has reduced the demand for mortgages.
• The cost-of-living crisis: The cost of living has been rising due to factors such as energy costs and food prices. This has made it more difficult for people to afford to buy or move homes, or first-time buyers to save deposits.
• A lack of supply of homes: There is a shortage of new homes for sale in Wales, which is driving up prices.

Despite the slowdown, some areas of the Welsh property market are still performing well, and we continue to see a strong number of sales across our offices. Cardiff is the only local authority in Wales to record a new peak price in the second quarter of 2023. This is due to several factors, including the city's strong economy.

Some experts believe that prices will continue to fall in the short term, while others believe that the market has stabilised. Currently, the Bank of England forecasts a UK-wide house price change of around 2-3% for 2024. Interest rates are not expected to fall until later in 2024, but many banks are dropping mortgage rates to attract customers. The market will likely remain somewhat subdued until interest rates decline and the cost-of-living crisis eases.

Focus often shifts to Christmas at this time of year but planning for 2024 is never a bad thing. If you are considering buying or selling a property in North Wales, it is important to do your research and speak to a knowledgeable and trusted professional. That’s where Dafydd Hardy comes in. We can advise you on the current market conditions and help you make the best decision for your circumstances. We have offices in Caernarfon, Bangor, Llangefni, Colwyn Bay, and Llandudno.