The latest house price data released by the Office of National Statistics (ONS) for September 2021 reveal that Wales continues to be the region in the UK with the highest house price growth.
The annual price change of a property in Wales has risen by 15.4% from September 2020 to September 2021, with the average price of a property now standing at £196,216.
The month-to-month Wales analysis shows an increase of 2.5% in prices from August 2021 to September 2021.
READ MORE: Coastal farmhouse that comes with three cottages and 12 acres is the perfect urban escape
On a UK level, the average UK house price increased over the year by 11.8% to a record high of £270,000.
The remaining nations all recorded increases over the year to September 2021, with the average house price rising by 12.3% in Scotland, 11.5% in England, and 10.7% in Northern Ireland.
Pembrokeshire was the hot spot for the month of August, but the latest ONS figures point to Vale of Glamorgan (20.6%) and Carmarthenshire (20.0%) as being the counties to see the highest growth in September.
In Wales, all local authority areas showed an increase in average house prices in September 2021 when compared with September 2020.
Vale of Glamorgan showed the strongest growth, rising by 20.6% to an average of £283,709 in the year to September 2021.
In contrast, Bridgend showed the lowest annual change, with an increase of 3.1% in the year to September 2021, with the average house price at £172,583.
In September 2021, the most expensive area to purchase a property was Monmouthshire, where the average cost was £315,000.
In contrast, the cheapest area to purchase a property was Blaenau Gwent, where the average cost was £115,000.
James Thomas, director at estate agent mgy says: "We continue to see a huge buyer demand despite the lead up to Christmas. The annual price change of 15.4% in Wales is truly astonishing with no signs of slowing down.
"It's evident Wales is high on the list for people relocating, whether its from London, Bristol or people choosing a quieter life down West, having no plans to visit the office for the foreseeable future."
James Thomas, an associate director for Savills Cardiff, comments: "Wales, being a comparatively affordable part of the UK, has seen particularly high demand, and it is this coupled with the relatively low supply of homes for sale, that has pushed up prices.
"Looking ahead, we are expecting less urgency in the market from next year, but there is no sign that demand will drop and so we are forecasting 4 per cent value growth, and 18.2 per cent growth to 2026, which would make it one of the fastest growing parts of the UK."
Vale of Glamorgan might have grabbed this month's top spot but Carmarthenshire is only 0.6% behind, and back in May 2021 it was officially Wales' hottest property spot, according to the ONS. Find out more about that here.
Rob Fearnley, local property partner at Purplebricks, adds: "Properties in the county of Carmarthenshire in particular, and mid Wales regions generally, have continued to increase in price, due to a lack of properties on the market. This continues to be an issue and has created a very competitive market for buyers.
"This is in addition to the fact that we are blessed to have several areas of outstanding natural beauty, such as the Brecon Beacons, resulting in a high demand with buyers, all seeking a sought-after lifestyle which can offer a great work/life balance."
Daniel Thomas, managing director at Fine & Country Pembrokeshire, says: "It is no surprise to me that prices in Carmarthenshire have grown by 20%. The easy access to the motorway network makes it the perfect place for buyers who may need to still commute to Cardiff or across the border a couple of times a week, or perhaps make regular trips to visit old friends and family.
"In the last quarter, around 90% of properties we have sold in Carmarthenshire have been to buyers who have relocated and the majority of these properties have ended up selling for prices in excess of the initial marketing price."
Although the figures give an indication of the property market in Wales, the ONS states that, 'as with other indicators in the housing market, which typically fluctuate from month to month, it is important not to put too much weight on one month's set of house price data.
'Low numbers of sales transactions in some local authorities can lead to volatility in the series.
'While we make efforts to account for this volatility, the change in price in these local levels can be influenced by the type and number of properties sold in any given period.
'Geographies with low number of sales transactions should be analysed in the context of their longer-term trends rather than focusing on monthly movements'.
To get the latest property newsletters from around the UK, click here
