Wales had the highest annual rate of house price growth in the UK during the second quarter of 2019,
Of the four nations in the UK Wales saw a rise of 4.1%, which took the average house price to £186,360, during the period April – June.
The figures were released from Principality Building Society’s Wales House Price Index for Q2 2019, which shows the rise and fall of house prices in each of the 22 local authorities in Wales.
While house price growth over the last quarter across Wales has been modest with a marginal increase of 0.1% to £186,360, house prices have risen by 4.1% annually on this time last year. In comparison with the rest of the UK England has seen a 0.1% fall in prices, with Scotland and Northern Ireland growing by 0.5% and 3.5% respectively.
Tom Denman, chief financial officer at Principality Building Society, believes the increase in house prices annually in Wales is linked to the increase of sales ahead of the Land Transaction Tax in April 2018 resulting in a dip this time last year, rather than any sudden increase in housing demand in Wales during Q2 2019.
Six local authority areas established new peak prices in Q2 2019: Bridgend (£169,980), Carmarthenshire (£166,057), Gwynedd (£187,142), Neath Port Talbot (£135,924), Pembrokeshire (£204,281) and the Vale of Glamorgan (£261,450).
Principality’s report also showed a trend in the past three months of rising house prices along the coastline from Conwy, Pembrokeshire to the Vale of Glamorgan, suggesting a potentially strong demand for holiday and second homes in Welsh coastal areas.
Mr Denman said: "Average house prices rose marginally in June by 0.1% on the previous quarter. The recent trends in Wales show the market has been resilient in the face of political and economic uncertainty. It would appear there is a trend of rising house sales on the coast of Wales, perhaps indicating more sales of holiday lets.
"Housing market trends are likely to continue to mirror what is happening in the broader economy. Cost of borrowing remains historically low, while the labour market is relatively healthy. People will no doubt be looking for some clarity around Brexit during the next quarter, which is likely to determine the confidence to buy and sell properties."
