New figures from the February House Price Index for England and Wales from e.surv show Wales is still experiencing significant house price growth
Wales currently has the second-highest price growth of the 11 government office regions (GOR) areas in Great Britain, according to the February House Price Index for England and Wales from e.surv. It has been in one of the top three places for the past eight months.
In Wales, figures showing the annual change in the average house price for the three months centred on January 2022, showed a 9% change for Wales, second only to the South East. This represents a small slowing in Wales from 9.2% in December.
Average House Prices in England and Wales for the period February 2021 – February 2022:
The figures reflect a shifting attitude with regard to where and how we decide to live and work, says Richard Sexton, director at e.surv.
“The headline is about the return of Greater London and the South East to the top four areas of house price growth in our index for the first time since August 2020. The South East is now in top position in the league table, having been absent for more than a decade. There is good reason for this.
“There is a huge lack of supply in the market and yet, in many parts of the country, there is still high demand for properties that offer more space and a garden but also access to places of work. Our data is showing evidence now that while some areas, like Wales, continue to offer excellent value and rural living, we are seeing a demand for properties that offer a good working from home environment but remain in reach of our cities.”
England and Wales Regional Heat Map for January 2022:
The strength of Welsh property prices reflects its scenic countryside and attractive coastal locations, says John Tindale and Peter Williams, Acadata Senior Analysts.
“It is also relatively affordable, with the third-lowest average house price of the eleven GOR areas, its average price only being bettered by the North East and Scotland.”
The annual change in the average house price for the three months centred on January 2022, analysed by GOR:
Annual house price growth in February 2022 has eased slightly to 6.9%, having stood at 7.3% one month earlier – and has slowed considerably in comparison with the period in May/June 2021 of price growth of 14% outside London and the South East, their analysis finds.
“The SDLT / LTT tax holidays were in full operation in May-June 2021 in both England and Wales. Buyers’ demand for property following its introduction on 8 July 2020 caused property prices to rise across the whole of England and Wales. However, buyer enthusiasm can be seen to moderate in the South East from October 2020, while the “race for space” continued elsewhere in England and Wales.
“All areas saw price growth moderate with the ending of the full rates of SDLT tax savings in England from July 2021, at the same time as the cessation of the LTT tax holiday in Wales. Paradoxically, July 2021 was the month in which Wales house price growth took the lead, with prices in that month in the country increasing by an annual rate of 12.2%, compared to the South West at 7.6%.”