House prices in Wales have risen for the first time in over a year, according to the Principality building society. Their house price index shows the average home now costs £236,369. This marks a recovery after five consecutive quarters of declining prices, although the average price is still 2.4% lower than in the same period in 2023.
Most council areas in Wales reported higher prices between April and June for the first time since 2022, though Wrexham, Powys, and Merthyr Tydfil saw declines. Bridgend, however, reached a new peak with average prices hitting £250,000.
Shaun Middleton, head of distribution at Principality, described the increase as a “significant turnaround,” suggesting that the housing market may be stabilizing. He noted that the past few years have presented the most challenging housing market conditions since the 2008 global financial crisis, particularly for first-time buyers.
Middleton expressed optimism about future price increases and a higher volume of transactions, citing government commitments to house building and more social housing for rent in Wales. He believes these factors, along with better economic conditions, increased affordability, and growing buyer interest, will support the market.
From April to June, there were 10,200 transactions in Wales, a 24% increase from January to March, and 16% higher than the same period last year. This is the first price rise since December 2022, when the average peaked at £249,000.