House prices in Wales lifted by more than 12% to on average top a record £245,000, as the country continues to experience record property price growth in the third quarter, according to the Principality Building Society.
Home prices hit £245,893, a 12.4% annual rise and a 2.2% three-month increase, says its quarterly Wales House Price Index from July to September.
It points out that house prices are also up across all 22 local authority areas, compared to a year ago, with 16 authorities reporting double-digit annual price increases.
The study adds that nine local authorities report record highs for the second quarter in a row, with several of these authorities — Blaenau Gwent, Ceredigion, Flintshire, Rhondda Cynon Taf and the Vale of Glamorgan – posting annual price increases of more than 15%.
Principality Building Society head of distribution Shaun Middleton says: “It is slightly strange talking about house prices in Wales reaching new peaks when so much has happened at the end of the third quarter with the UK government mini-budget and continued cost of living pressures.
“Transaction levels remained relatively strong over the third quarter, helped in part by buyers wishing to complete their house purchase with the attractive mortgage deals they had previously secured.
“With interest rates surging higher, meaning repayments on mortgages will become much more costly per month, the market faces significant challenges in the immediate future.
“Even though the Welsh government has increased the Land Transaction Tax threshold from £180,000 to £225,000 in a bid to support first-time buyers and those wishing to move homes, affordability will come under considerable pressure, which could mean that purchasing demand will reduce.”
The report estimates that there were 12,400 transactions in Wales in the third quarter, 13% higher than in the previous quarter and 1% lower than a year ago, but on a par with pre-pandemic levels in the third quarter of 2019.
