Support quality, independent, local journalism…that matters

From just £1 a month you can help fund our work – and use our website without adverts. Become a member today

The average house price in Wales has fallen 6.5% in the past year to £229,263 – according to data collated by the Principality Building Society.

The drop of 2.1% in January and March this year, compared with October to December 2023, is the fifth consecutive quarter that prices have fallen in Wales and brings the average house price almost £20,000 below its peak of £249,000 at the end of 2022.

Only four out of the 22 local authorities have witnessed property price increases. Notably, Flintshire stands out with a double-digit surge of 12%.

According to the Principality, nominal prices remain 23% higher than five years ago, broadly matching the rise in consumer prices over the period, meaning that property prices in real terms are back to where they were in at the start of 2019.

In Caerphilly County Borough, the average house price currently stands at £198,979. This represents a modest 1.3% increase compared to the same period last year. However, the region experienced a slight decline of 0.7% from the previous quarter (Oct to Dec 2023).

Shaun Middleton, head of distribution at Principality Building Society, said: “Economic pressures, coupled with the higher cost of mortgages has meant affordability continues to be a problem for many buyers, placing undoubtable pressure on the housing market in Wales.

“The picture across Wales shows that overwhelmingly local authorities have been reporting price decreases, rather than increases, translating into another year-on-year falling of house prices.”

Compared with a year earlier, only four of the 22 local authorities reported property price increases, although the majority of these increases are nominal, Flintshire bucked the trend by reporting a double digit increase of 12%.

Five local authorities – Carmarthenshire, Denbighshire, Merthyr Tydfil, Powys, and the Vale of Glamorgan – experienced double digit price falls between 10% and 16% when compared to the same period the previous year, with the Vale of Glamorgan reporting the largest fall of 15.7%.

There were just below 8,400 transactions in Wales in the first quarter of 2024, 15% fewer than the last quarter of 2023. This downward trend is reflected across the rest of the UK, with wider economic pressures facing the housing market acting as a major drag on demand and activity levels during the quarter.

For Wales, quarterly sales transactions have declined continuously year-on-year since late 2021.

While all property types continue to experience weaker sales, detached properties are now the furthest from their peak in relative terms, demonstrating a fall in demand for, as well as the prices of, larger properties.

[mautic type=”form” id=”6″]