The first quarter of 2025 has seen a robust performance in North Wales' property market, reflecting broader national trends. Despite a slight national dip in February, with UK house prices experiencing a 0.1% decrease, the overall annual growth remains positive at 2.9%, bringing the average house price to £298,602.

Regional Highlights
In Wales, the housing market has shown resilience. Annual price growth gained momentum in the last quarter of 2024, improving from 0% in the previous quarter to 0.9%. This upward trend is expected to continue, with a modest 3.1% rise forecasted for 2025.

The increase in buyer activity can be attributed to stabilising mortgage rates, now ranging between 4-5%, and a steady supply of properties entering the market. Some lenders have now offered sub 4% mortgages but these typically require a large deposit.

Market Dynamics
The national housing market has had a strong start to 2025, with house prices rising and buyer demand up by 13%. This surge is partly due to buyers aiming to complete purchases before the stamp duty changes in April for England.  We’ve seen a strong start in Wales with sales our sales figures for Jan, Feb and March all exceeding those of last year.

Rental Market
As of January 2025, the average monthly rent in Wales reached £780, marking an 8.4% increase (£61) compared to the previous year. This growth aligns with the UK's overall rental inflation, where regions like Northern Ireland and the North East have seen increases of 9% and 6.3%, respectively.

This uptick in supply has contributed to a more balanced market, leading to a slight decrease in tenant competition. Currently, there are approximately 14 enquiries per rental property, down from 27 enquiries in the previous year.

Rental prices in Wales are expected to continue rising, albeit at a moderated pace. Projections suggest an average increase of around 4% for 2025, with smaller towns and commuter areas likely to experience the most significant growth.

Looking Ahead
The outlook for North Wales remains positive. With mortgage rates stabilising and a balanced supply-demand dynamic, the region is poised for steady growth throughout 2025. Both buyers and sellers are encouraged to stay informed and consider current market conditions when making property decisions. However, sales of properties over £500,000 and those with additional holiday accommodation remain slow across North West Wales, due to a decline in second/holiday home and investment buyers. There is also a general increase in supply of these properties as many look to sell due to increased costs.