During and immediately following the Covid-19 pandemic, Wales emerged as a leading region in the UK for house price increases. The Office for National Statistics (ONS) and the Land Registry data highlighted this growth, with all 22 counties in Wales experiencing a rise in average house prices. This growth was particularly notable in coastal areas like Pembrokeshire, Carmarthenshire, and Ceredigion. These regions attracted buyers seeking homes away from densely populated urban areas, triggering a buying frenzy that saw properties sold significantly above asking prices.
The Current State of the Welsh Housing Market
Recent data from the ONS for the 12 months leading up to September 2023 paints a diverse picture. While some Welsh counties have seen a decrease in average house prices, others continue to experience growth. Notably, 11 counties have reported an increase in average house prices, though in four of these counties, the increase is less than 1%. Only three counties have witnessed a growth of over 2%, with Monmouthshire leading at 4.7%, followed by Cardiff and Vale of Glamorgan.
Detailed County-by-County Analysis
- Monmouthshire: The leader with a 4.7% increase, average price £367,984.
- Cardiff: Experiencing a 2.5% rise, average price £268,405.
- Vale of Glamorgan: Up by 2.3%, average price £315,755.
- Other Counties: Merthyr Tydfil, Denbighshire, Newport, Flintshire, Swansea, Gwynedd, Ceredigion, and Neath Port Talbot also saw growth, albeit marginally.
Monmouthshire: A Consistent Performer
Monmouthshire has consistently been the most expensive county for property purchases in Wales. Its resilience in the face of market fluctuations is remarkable, often slowing in growth rather than decreasing in value. This stability is attributed to its attractive location, including parts of the Wye Valley Area of Outstanding Natural Beauty, and excellent transport links to major UK cities.
The Driving Factors Behind Monmouthshire’s Strength
Monmouthshire’s proximity to major cities like Bristol, Cardiff, and Birmingham, forms a ‘Golden Triangle’ of economic activity. The county’s strong transport connections have been a key factor in maintaining its property market’s strength. The shift to remote working during the Covid-19 pandemic further fueled demand in Monmouthshire, as buyers from more expensive areas sought better value for money while retaining accessibility to their workplaces.
Impact on Local Property
This influx of buyers has brought about rapid and lucrative transactions within Monmouthshire. From September 2021 to September 2022, the county witnessed a 14.4% increase in property prices. This trend continued over the following 12 months, benefiting local homeowners and sustaining a buoyant market.
Overall Trends in Welsh Property Prices
As of September 2023, the average property price in Wales stands at £215,000, marking a 2.7% decrease over 12 months. However, Monmouthshire bucked this trend with an increase from £352,000 in September 2022 to £368,000 in September 2023. Rightmove data shows that the majority of sales in Monmouthshire were terraced properties, followed by semi-detached and detached homes.
Land Registry Figures
The Land Registry’s monthly house price figures offer invaluable insights, including data on average prices by property type, sales, cash mortgage sales, and information specific to first-time buyers, new builds, and former owner-occupiers. However, it’s important to note that the most recent two months’ data are not published due to insufficient new build transactions for meaningful results.