A building society says the combination of the UK Labour government’s housing proposals and a regional plan for 20,000 low-carbon homes for rent, could herald “a new dawn” for the housing market in the second half of 2024.
That’s the view of the Principality Building Society, which has this week reported that the average price of a home in Wales has risen to £236,369 in the second quarter of 2024, making this the first time that prices have increased since December 2022.
A spokesperson says: “This increase … marks a significant turnaround and suggests that the market may be stabilising. The last few years have marked the most challenging housing market conditions since the Global Financial Crisis in 2008, with first-time buyers encountering the toughest conditions in about 70 years, according to the Building Societies Association.
“Looking ahead, the new UK Labour Government are moving forward with a significant legislative move aimed at accelerating the development of infrastructure and the construction of 1.5 million homes in England, meanwhile the Welsh Government has committed to deliver 20,000 new low-carbon homes for rent within the social sector during the current term.
“Together with our insight, this suggests that the second quarter may well represent a new dawn for the housing market in Wales, as we expect house prices to increase, with a higher volume of transactions, supported by better economic conditions, increased affordability and growing buyer interest.”
The Principality’s housing market figures show the rise and fall in house prices in each of the 22 local authorities in Wales. Fifteen local authorities reported price rises when compared to the previous quarter, with Bridgend and Ceredigion recording double-digit increases of more than 16%.
Year-on-year, 11 local authorities still reported declines, with Wrexham experiencing the biggest drop of 10% when compared to the same period the previous year.
There were 10,200 transactions in Wales in the second quarter of 2024, 24% more than in the first quarter and 16% up on the same period a year ago. This represents an area of growth, as quarterly transactions have continuously declined since late 2021.
