Wales leads the way on house price growth
Wales is now the fastest growing region across the UK, where prices have increased by 14.6% annually and 1.4% month-on-month, Rightmove’s House Price Index has found.
It now costs £228,410 to buy in Wales, where buyer demand is up 44% compared to the year before.
Tim Bannister, Rightmove’s director of property data, said: “The desire for a change of lifestyle often comes with the need for a change of location.
“That might be satisfied by buying a second home, or with more flexible working patterns a relocation of one’s main residence.
“Average prices in Wales are well below the national average, offering good value as well as beautiful rural and coastal surroundings.”
The region seeing the second biggest increase is Yorkshire and the Humber (11.3%), following the South West (11.4%) and the North West (11.2%)
The monthly figures suggest London may finally be bouncing back.
While annual growth is at 1.8% in the capital, the lowest of all the regions, prices have risen by 1.5% on a monthly basis.
Tomer Aboody, director of property lender MT Finance, said: “Regional property price increases are much higher than in London, which comes as no surprise as those living in the capital choose to relocate further out, where their money will go further.
“As well as being cheaper, moving to greener and coastal locations also provides an improved quality of life. Not everyone is a winner, however, as the influx of new residents pushing up prices is having an impact on locals who cannot so easily afford to pay them.
“The growth in property prices might not be sustainable in the long run but while interest rates and borrowing remain cheap, the demand will be there.
“This again questions the stamp duty charges for downsizers, who are holding onto their homes due to the high fees they need to pay to move. Reducing the tax they need to pay will release further homes onto the market and help manage the growth in pricing, which would be good news for first-time buyers in particular.’
While annual growth rates are still extremely high, the market is now showing signs of cooling.
The price of property coming to market across the UK rose by 0.8% in June, following a rise of 1.8% last month and 2.1% in April.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “The early signs of some market cooling in the Rightmove survey are not surprising for us.
“We have certainly noticed a reduction in the pace of new enquiries and an increase in selling instructions over the past few weeks, once it became clear that most transactions had little chance of meeting the stamp duty deadline.
“As a result, we are seeing more balance between supply and demand which is prompting a softening but no correction in prices so far.”
If you would like to chat about the property market feel free to get in touch. If you would like to book a valuation with us and see what your home could be worth call us on 01970 636 000.
Take care,
The Alexanders Team.