Felicity Evans, the Money editor at BBC Wales News, reported that the average house price in Wales has increased by 4% year on year to £238,483, based on the latest figures from the Principality Building Society. However, the regional market shows a mixed picture, with 13 local authority areas experiencing an annual increase in prices while nine saw a decrease. The market strength is currently concentrated in south Wales, with areas like Bridgend, Blaenau Gwent, and Caerphilly reaching record prices between January and March this year. Additionally, the number of sales has gone up, with a 20% increase in transactions in the first quarter of 2025 compared to the same period last year.
Gemma Redmond and her partner Ellis Price are hoping to take advantage of this market momentum to sell his Cardiff flat and purchase their first home together. Ms. Redmond, a veterinary nurse, expressed the challenges of living with a dog and a cat in a one-bedroom flat, highlighting the need for more space. The couple recently listed their flat for sale but lost out on a house they were interested in due to being outbid by another buyer. Mr. Price mentioned the fast-paced nature of the market, with properties not staying on the market for long and difficulties in viewing them promptly.
The recent decrease in the Bank of England base interest rate and the expectation of further cuts later in the year have made mortgages more affordable. Despite some affordability challenges, transactions reaching 10,000 in the first quarter of 2025 indicate that buyer confidence is growing. Iain Mansfield, the chief financial officer for the Principality, acknowledged the positive start to the year but cautioned about rising utility and energy bills impacting household budgets. He also noted challenges in coastal and rural areas, partly influenced by government interventions such as increased council tax for second homes and higher land transaction tax for additional properties.
In some tourism hotspots, local authorities have raised council tax on second homes, while the Welsh government has hiked the land transaction tax for additional properties. However, Mr. Mansfield emphasized a positive outlook for Wales overall, citing growth in property sales over the last quarter of 2024 and the first quarter of 2025. He anticipates further reductions in the Bank of England base rate, which could ease affordability for mortgage customers and continue the positive trend in the housing market
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