House prices in Wales growing faster than UK average

 

Last year saw property prices in Wales grow by 3.3% to £179,855, and with the Severn Bridge toll fee about to be scrapped, could this be the start of the end of cheap Welsh property?

The latest report from the Principality Building Society saw UK average house prices inflate by 2.7% in 2017, with the West Midlands, Wales and the north-west of the country providing a major boost to the results compared to parts of London and the south-east.

In Wales, the property market was varied but Cardiff’s terraced properties proved one of the most popular buys – which is probably a result of the stamp duty changes that were brought in for first-time buyers in last year’s Autumn Budget, abolishing the tax on properties up to the value of £300,000. Terraces in the city rose by £3,000 in the final quarter of 2017, and buyers will be keen to complete transactions before Wales brings in its new land transaction tax in April this year.

Newport is another city on the up, after the highest number of new-builds in the country were built here as it becomes an increasingly popular place to live and invest. The city saw average house prices increase to £183,683 by the end of 2017, and the trend is likely to continue as more regeneration takes place in the area.

Big changes are afoot in Wales

One huge change that many believe will push Welsh house price up even higher, particularly in the south of the country, is the scrapping of the toll charge on the Severn Bridge. Charges have already been dropped this month from £6.70 to £5.60 for cars after the bridge went into public ownership, and charges are expected to be abolished by the end of the year – although First Minister Carwn Jones thinks it should happen straight away.

Many people who currently work in places like Bristol just over the border choose to buy properties in Wales because prices are so much lower, making it worth paying the toll fee. Rhosneigr holiday lettings also proving really popular for investors.

Once the bridge crossing becomes free, there could be a surge in demand for property in south Wales, which would have the effect of pushing up prices even further in 2018. It would also create more opportunities for investment, and could mean the growth of new-build developments in Newport could spread further afield and bring with it huge regeneration for the area.

Vicky Kells from Clarke Willmott LLP advises a cautious approach to the repercussions of abolishing the Severn Bridge toll fee.

“There is no doubt that the removal of the tolls will create a number of tremendous opportunities and confirm that Wales is very much open for business,” said Kells. “Rather than get caught up in the initial euphoric rush, a much more considered, strategic approach is needed that has longer-term considerations for South East Wales’ housing needs.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Severn Bridge Wales

House prices in Wales growing faster than UK average

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.