Wales House Prices Experience Significant Decline in Gwynedd County
Recent data from the Principality Building Society reveals a notable 12% drop in house prices in a county in north-west Wales. Cyngor Gwynedd, the local authority in Gwynedd, has implemented new regulations requiring planning permission to convert residential properties into second homes or holiday lets. Additionally, the council enforces a 150% council tax premium on such properties as part of their strategy to enhance the availability of affordable housing for local residents.
This decline marks the most significant annual decrease in value among all regions in the Wales House Price Index, which covers residential property sales from the last quarter of 2024. The average house price in Wales has remained relatively stable at £233,194. Tom Williams, a homeowner in Lancashire, is struggling to sell his second home in Morfa Nefyn, Gwynedd, despite reducing the asking price by £40,000 after listing it for sale in April of 2024.
The local council’s interventions, including the increased council tax charge on second and holiday homes, have led to a surge in properties being placed on the market in Gwynedd. Dafydd Hardy, an estate agent in north east Wales, describes the housing market in the area as “mixed,” with an influx of properties due to the council’s initiatives. However, he notes that second home prices often exceed what local residents can afford, emphasizing the need for a balanced market that prioritizes the housing needs of first-time buyers.
According to the Wales House Price Index, Pembrokeshire witnessed an 8.9% annual decrease in house prices, while Carmarthenshire experienced the largest year-on-year increase at 9.2%. The Principality Building Society’s Iain Mansfield highlights the resilience of the Welsh housing market over the past year and notes a 28% increase in sales, indicative of growing consumer confidence and affordable mortgage rates. As the market looks ahead to 2025, there is a more positive outlook for prospective homebuyers, according to Mr. Mansfield
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