We look at Tuesday’s ONS house price statistics and what it means for the Welsh property market.
According to Tuesday’s ONS house price index, annual house price inflation stood at 1.3% in Wales, a decrease of 4.1% of last month’s figures. Equally, the average house price in Wales now stands at £169,000, 2.2% lower than the pre-recession dip witnessed in 2008.
Although we are still seeing growth in the Welsh property market, the speed at which this is taking place has reduced. Nonetheless, ‘slow and steady’ can be a blessing for home owners, as rapid growth in the housing markets can lead to nervousness and concerns of instability.
Equally, house prices increased 5.5% in April 2015, yet this has been one of the slowest rates of growth since December 2013, and while the summer of 2014 saw a boom in the housing markets, the ensuing restrictions and limits placed to calm the upsurge has led to a decelerated, yet steady growth, ever since.
Today’s figures are positive news for the Welsh housing market, suggesting that the balance of supply and demand is beginning to even out. With more homes being built, it’s good to see house-builders are stepping up to the mark to accommodate the increasing demand, enabling even more people to get onto the property ladder.
Rhiannon Davies MNAEA
Head of Business Operations