The average price of a home in Wales has risen to £236,369 in the second quarter of 2024, marking the first increase since December 2022, when the peak average price of £249,000 was recorded. This data comes from Principality Building Society’s Wales House Price Index for Q2 2024 (April-June), highlighting changes in house prices across the 22 local authorities in Wales.
The report indicates a 3.1% rise in the average house price since the last quarter, driven by most local authorities reporting higher prices for the first time since 2022. Despite this quarterly increase, the average price remains 2.4% lower compared to the same period last year and 5% below the peak price of £249,000.
Shaun Middleton, head of distribution at Principality Building Society, said: “The second quarter of 2024 has brought much-needed positive news to the Welsh housing market. After five consecutive quarters of declining house prices, we are now seeing a recovery. The picture across Wales shows that local authorities have been reporting quarterly price increases, rather than decreases, for the first time since 2022, translating into a steady rise in house prices.”
Fifteen out of 22 local authorities in Wales reported price rises compared to the previous quarter, with Bridgend and Ceredigion experiencing increases of more than 16%. However, 11 local authorities still saw year-on-year declines, with Wrexham recording the largest drop at 10%.
There were 10,200 transactions in Wales in the second quarter of 2024, a 24% increase from the first quarter and a 16% rise from the same period last year. This marks the first growth in quarterly transactions since late 2021.
A recent survey by Principality revealed that 66% of its members consider the type and size of the home as the most important factors when house hunting, with detached houses being a popular choice. While detached house transactions saw a small resurgence, flats experienced the most significant recovery, with transactions up by a third compared to both the previous quarter and the previous year, reflecting affordability pressures in the market.
Middleton continued: “This increase, bringing the average price to £236,369 in Wales, marks a significant turnaround and suggests that the market may be stabilising. The last few years have marked the most challenging housing market conditions since the Global Financial Crisis in 2008, with first-time buyers encountering the toughest conditions in about 70 years, according to the Building Societies Association.”
Looking ahead, the new UK Labour Government is moving forward with legislation aimed at accelerating infrastructure development and building 1.5 million homes in England. Meanwhile, the Welsh Government has committed to delivering 20,000 new low-carbon homes for rent within the social sector during the current term.
“With better economic conditions, increased affordability, and growing buyer interest, the second quarter may well represent a new dawn for the housing market in Wales, as we expect house prices to increase and transaction volumes to rise,” Middleton added.
