House Price Surge Mercifully Slowing, Wales Still Setting the Pace

For first-time buyers, the UK housing market over the last couple of years has been a nightmare. Prices have continued to surge even beyond the usual high-cost centres of cities, with those who already have plenty of cash or property value being more than happy to pile in and keep the market hot.

You’re also seeing many who got on the housing market via the Help to Buy scheme face the tough decision to sell or risk massive repayments due to the perceived rise in home value over this rampant period. This has been the state of play across the UK, but it has been most prevalent in Wales, where house price growth has been at its greatest.

Somewhat mercifully for many, the growth appears to have slowed through the winter months of 2022 – as it often does – with property values only increasing by less than one percent in December, January, and February. This marks the slowest increase in August 2020 – one month after the stamp duty holiday came into play. Still, house prices remain high, particularly across Wales.

Wales leading the UK in house price growth

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Throughout the house price rush, Wales has been a frontrunner. By June of last year, it was found that the average house price had shot up by over 13 percent year-on-year. It was the strongest performance in the region for 16 years, with remote work tipped as a big driver of people being willing to pay higher prices for a more scenic home.

At the end of last year, it was further affirmed that Wales had been the hottest market in the UK. Across 2021, house prices averaged a 14 percent increase, with Swansea being of particular interest with its prices going up by more than 15 percent. October was one of the hottest months for house buyers in Wales last year, with the average tipping up to a 15.5 percent increase on October 2020.

What’s been driving the surge in house prices?

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There are many elements that have contributed to the rise in house prices in Wales, England, Scotland, and Northern Ireland, but many, like the stamp duty holiday, have long since faded. One of the ongoing facilitators, however, continues to be the ease of access to a mortgage in principle that performs a soft credit score check, with Trussle offering this as a free service.

Knowing how much you can lend quickly and for free certainly fuels your ability to locate a new home if you’re looking to sell your own. However, this easier access to key information that would give many the green light to become buyers also increases the number of house hunters without much by way of increased availability. Sure, some are looking to cash in on house price increases, but overall, there’s a housing shortage in the UK.

This is why the supply crunch has been particularly acute in spacious areas, as the Financial Times details, with people looking for places with rooms that can be offices, gardens, and more space overall. However, demand appears to be slowing somewhat, with remote and hybrid work not being as regularly instated across the business world as many would have hoped.

House sellers in Wales have been able to capitalise on the natural beauty and preference for open spaces of homes across the country, but, thankfully, the crazy increases look to be slowing down.