As we navigate through 2024, the housing market in Northwest Wales has presented a dynamic and evolving landscape. This year has seen a blend of resilience and adaptability in response to economic shifts and varying demand levels based on property type. The imminent general election has slightly slowed the market in the latter parts of June, but overall the market has continued to outperform 2023.

Here’s a closer look at the key trends and factors shaping the housing market in Northwest Wales so far this year.

Economic Context
The broader economic environment in 2024 has been marked by moderate growth and a gradual recovery from the economic challenges. Inflation has remained a concern, albeit at more controlled levels than in previous years, with a steady decline. Mortgage rates remain competitive but higher than those previously experienced. The Bank of England is widely expected to lower their base rate later this year, which should see mortgage rates follow by marginal amounts this year (always seek independent financial advice). Mortgage applications have continued to increase since February, with buyer confidence increasing.

House Prices and Demand
House prices in Northwest Wales remain stable but slightly down from their peak of 2022. Most forecasters expect house prices to grow somewhat by the end of 2024 by around 1-2%. Demand has remained strong with sales outpacing 2023 figures. However, the macro picture paints a very different view. Fewer high-value properties are selling, especially those on the Isle of Anglesey. This could be attributed to declining second/holiday home purchases and skilled employment opportunities. Family homes, first-time buyers, and those downsizing, in traditionally commuter/urban environments, continue to sell well. Properties with ancillary holiday accommodation have not performed as well, with higher commercial interest and business rates squeezing their returns.

First-Time Buyers and Affordability
First-time buyers in Northwest Wales have faced both opportunities and challenges in 2024. Government initiatives aimed at supporting new buyers, such as the Help to Buy scheme, have provided critical assistance. However, rising house prices and higher interest rates have somewhat offset these benefits, making affordability a persistent issue. That being said, sales to first-time buyers have increased in 2024 with many first-time buyers turning to smaller properties or waiting until later in life to purchase, allowing for a higher purchase price.

Rental Market Dynamics
The rental market in Northwest Wales has also experienced notable trends in 2024. Rental prices have been increasing, driven by the sustained demand for rental properties and reduced supply as landlords exit the market or tenants remain in situ. However, rental prices appear to have now plateaued and in some areas are taking a very slight dip.

Landlords have faced new regulatory pressures, including increased legislation. While these regulations aim to improve living standards, they have also added to the costs for property owners, influencing rental prices and their involvement in the market. Higher mortgage rates have also reduced the number of buy to let landlords enter the market.

Future Outlook
In conclusion, the Welsh housing market in 2024 reflects a complex interplay of economic conditions, buyer behaviours, and regulatory influences. As the year progresses we expect interest rates to slightly come down, house prices to very slightly increase, and rents to remain fairly flat. Whilst house sales are well on track to outstrip 2023, with stronger buyer confidence each month.

If you have been thinking of buying or selling a home in North Wales, contact us today and our trusted experts will assist you. We have offices in Caernarfon, Bangor, Llangefni, Llandudno and Colwyn Bay covering Gwynedd, Isle of Anglesey, and Conwy.  

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