The 2023 house price figures across the UK are finally in, showing the majority of areas in Wales saw declining average prices, with only three locations seeing a percentage change of over 1%.
Researchers at South Wales conveyancing firm, Devonalds Solicitors, have conducted a thorough analysis of house price data from January to December 2023.
The research shows that 7 locations saw a house price increase from the beginning to the end of the year, whilst 12 locations saw a decrease. This is both good news and bad news – good news for buyers, and bad news for sellers and lenders – ultimately displaying an economic downturn in Wales.
Below is the full list of Welsh Local Authorities, their house prices at the start and end of the year, alongside their percentage changes:
| Location | Jan-23 | Dec-23 | % Difference |
| Areas with the Highest House Price Increase | |||
| Vale of Glamorgan | £ 306,174.00 | £ 323,442.00 | 5.64% |
| Pembrokeshire | £ 235,852.00 | £ 244,317.00 | 3.59% |
| Gwynedd | £ 209,956.00 | £ 213,196.00 | 1.54% |
| Swansea | £ 194,607.00 | £ 196,029.00 | 0.73% |
| Flintshire | £ 216,725.00 | £ 218,308.00 | 0.73% |
| Areas with the Most House Price Stability | |||
| Cardiff | £ 265,612.00 | £ 266,873.00 | 0.47% |
| Conwy | £ 215,912.00 | £ 216,727.00 | 0.38% |
| Bridgend | £ 203,752.00 | £ 203,461.00 | -0.14% |
| Merthyr Tydfil | £ 153,618.00 | £ 153,057.00 | -0.37% |
| Wrexham | £ 205,667.00 | £ 204,487.00 | -0.57% |
| Areas with the Highest House Price Decrease | |||
| Monmouthshire | £ 351,785.00 | £ 347,574.00 | -1.20% |
| Powys | £ 241,712.00 | £ 236,578.00 | -2.12% |
| Caerphilly | £ 189,888.00 | £ 185,357.00 | -2.39% |
| Blaenau Gwent | £ 134,861.00 | £ 130,743.00 | -3.05% |
| Newport | £ 237,906.00 | £ 229,808.00 | -3.40% |
| Carmarthenshire | £ 211,419.00 | £ 203,726.00 | -3.64% |
| Neath Port Talbot | £ 167,057.00 | £ 160,254.00 | -4.07% |
| Isle of Anglesey | £ 234,928.00 | £ 223,975.00 | -4.66% |
| Torfaen | £ 199,519.00 | £ 186,446.00 | -6.55% |
| Denbighshire | £ 206,575.00 | £ 192,157.00 | -6.98% |
| Rhondda Cynon Taf | £ 161,905.00 | £ 149,195.00 | -7.85% |
| Ceredigion | £ 254,595.00 | £ 233,387.00 | -8.33% |
House prices dropped hardest in areas including Denbighshire, Rhondda and Ceredigion. Notably, the regions experiencing the most substantial surge in house prices exhibit notable diversity across the South, North and West of Wales.
In addition to the regions experiencing notable fluctuations in house prices, four areas emerged as exemplifying relatively stable house prices, with a less than 1% variance. Surprisingly Swansea and Cardiff, both major cities in Wales, stood out as instances of considerable steadiness in the housing market.
Although stability is preferable to a decline in property prices, it can impact the ability to refinance a mortgage. Homeowners frequently rely on equity growth to meet the criteria for favourable refinancing terms. If home values remain stagnant, it may restrict refinancing opportunities.
Rhian Derrick, Partner at Devonalds, says, “Fluctuating house prices, as evidenced by the recent data from the House Price Index, underscore the inherent volatility within the property market, particularly in regions throughout Wales.
“The notable decline and stagnation in average house prices over the course of 2023 reflects a challenging landscape for homeowners and prospective buyers alike. Such fluctuations can significantly impact investment decisions and financial planning.
“As house prices decrease across many areas within Wales, homeowners may face challenges in maintaining the value of their properties, potentially impacting their equity and financial plans. However, for prospective buyers, this presents an opportunity to enter the market at more affordable rates, potentially realising their dream of homeownership sooner than expected.”
If you are looking to buy a property in Wales in 2024 and require a solicitor to get you started, Devonalds can help. If you are planning to purchase, sell or remortgage your home, then get in touch with Caerphilly’s Devonalds conveyancing solicitors by emailing caerphilly@devonalds.co.uk.
Credit to: https://www.devonalds.co.uk/ who carried out the research
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