Prices in Wales continue to rise at the fastest rate in the UK despite the expected slowdown

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Looking at house prices. Photo by Daniel Leal-Olivas/PA Wire.

House prices in Wales continue to rise at the fastest pace in the UK despite an expected slowdown, an index shows.

Prices have reached an average of £224,858 in Wales, an annual rise of 16.1%, marking the strongest level of growth since the start of 2005, Halifax said.

This means average prices have risen by £31,246 in Wales just in the past year, more than most annual incomes.

Across the UK, property values ​​rose 11.5% a year in August, Halifax said, with a typical property now costing a record £294,260.

Among the nations and regions of the UK, the South West of England saw the second highest annual increase, of 14.5% to an average of £313,003.

The Halifax report, however, warned that “more difficult times are to be expected for property prices”.

Kim Kinnaird, director of Halifax Mortgages, said the latest monthly increase is “relatively modest” compared to recent times, adding: “Over the past year the rate of monthly house price inflation has been in average about 0.9%.

“Typical house prices hit a new record high in August – as they have in seven of the eight months so far this year.

“However, the annual growth rate fell to 11.5% from 11.8% in July, the lowest level in three months.

“While property prices have so far proved resilient in the face of growing economic uncertainty, industry surveys indicate cooling expectations in the majority of parts of the UK, as demand of buyers is declining, and other forward-looking indicators also imply a likely slowdown in market activity.”

Ms Kinnaird added: “With housing price affordability to income ratios already historically high, a tougher period for house prices is to be expected.

“However, this must be seen in the context of the exceptional growth seen in recent years, with average house prices rising by more than £30,000 in the last 12 months alone.”

‘Increase’

Elsewhere in the UK, the annual growth rate in Northern Ireland was 12.5%, with a typical house now costing £185,505.

A house in Scotland now costs a record average of £204,362.

Alice Haine, personal finance analyst at Bestinvest, said: “Perhaps those who are suffering the most from this uncertain housing market are renters, many of whom not only face higher household bills, but also rent increases as landlords seek to pass on rising costs to their tenants.

“If they are saving for a down payment to buy their own home, they may have to agree to rent for longer than expected because other financial considerations take precedence, namely higher energy and food bills.”

In London, the average house price rose 8.8% a year, marking the strongest growth in more than six years.

With a typical property costing a record £554,718, the average house price in London has risen by £44,669 over the past year.

Marc von Grundherr, director of estate agent Benham and Reeves, said: “With the London market now starting to kick into high gear, this will only further strengthen the power of the property market and bring an even greater increase real estate prices over the next few months. .”

Tom Bill, head of UK residential research at Knight Frank, said: “The supply of houses has tightened over the summer as more people have taken summer holidays for the first times in three years, which has kept prices up.

“We expect more properties to be listed in the coming weeks as we transition from a seller’s market to a buyer’s market. With mortgage rates rising, this will increase downward pressure on properties. price after they seemed to defy gravity for so long.

Andrew Montlake, managing director of mortgage broker Coreco, said: “Rising mortgage rates and immense pressure on household finances will almost certainly begin to temper demand in the months ahead.”

Mark Harris, managing director of mortgage brokerage SPF Private Clients, said: “There are still good deals to be had, although rising energy bills are impacting affordability calculations and lenders expand their policy for high-income households accordingly.”

Nicky Stevenson, managing director of estate agent Fine & Country, said: ‘The outlook for the housing market may depend on the stimulus package currently being finalized by the new Prime Minister.

Increase

Here are the average home prices in August and the annual percentage increase, according to Halifax:

– Wales, £224,858, 16.1%

– Northern Ireland, £185,505, 12.5%

– Scotland, £204,362, 9.4%

– East Midlands, £244,378, 12.0%

– East of England, £343,507, 11.6%

– London, £554,718, 8.8%

– North East, £169,721, 9.6%

– North West, £229,182, 13.7%

– South East, £400,528, 12.1%

– South West, £313,003, 14.5%

– West Midlands, £253,871, 13.5%

– Yorkshire and Humber, £207,636, 12.2%


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