Principality Building Society House Price Index Wales, Q2 2019 - Where home matters
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HOUSE PRICE
INDEX
Principality Building Society
House Price Index
Wales, Q2 2019
Where home matters
Data provided byWales tops the UK in terms
of annual house price growth
Wales had the highest annual rate of house prices in the four UK countries
during the second quarter at 4.1%, with England at -0.1%, Scotland at +0.5%
and Northern Ireland at +3.5%. However, this has more to do with the increase of
sales ahead of the Land Transaction Tax in April 2018 resulting in a dip in Q2 a year ago,
than with any sudden increase in housing demand in Wales during Q2 2019. Quarterly
growth has seen a marginal increase at 0.1% and is a more realistic reflection of the
market, with overall sales down by 1% compared to the first half of 2018.
The average house price in Wales is £186,360
4.1%
House sales
Q2 2019 vs Tom Denman,
Q2 2018 Chief Financial Officer
down at Principality Building
Annual -0.1% Society said:
house
price “Average house prices rose
growth marginally in June by 0.1%
on the previous quarter. The recent trends in Wales show the
market has been resilient in the face of political and economic
uncertainty. It would appear there is a trend of rising house
0.1%
sales on the coast of Wales, perhaps indicating more sales
Moderate house of holiday lets. Housing market trends are likely to continue
price growth to mirror what is happening in the broader economy. Cost of
expected 2019 borrowing remains historically low, while the labour market is
Quarterly house relatively healthy. People will no doubt be looking for some
price clarity around Brexit during the next quarter, which is likely
up to determine the confidence to buy and sell properties.”
£
£
Market Snapshot
There has been a trend in the market this last quarter UK Finance – the trade body representing the mortgage
of rising house prices along the western coastline, lenders and similar institutions – has recently published
from Conwy in the north, down to Vale of Glamorgan its analysis of the Wales Housing market. They reported
in the south, suggesting a potentially strong demand 1.1% more mortgages were completed in the first quarter
for holiday lets and second homes along the Wales of 2019 than the same period in 2018, more than half of
coastal areas. There is currently strong demand for which were by first-time-buyers. Clearly, there has been
staycations being reported elsewhere in England, upward pressure on the purchase of starter homes by
with Brexit uncertainties resulting in higher numbers first-time-buyers during Q1 2019, which is likely to have
of holiday makers wishing to remain in the UK. continued into Q2 2019, causing prices to rise over this
period. Annual price rises observed in five of the most
Six local authority areas have established new peak prices affordable local authority areas by value are likely to
in Q2 2019: Bridgend, Carmarthenshire, Gwynedd, Neath be a consequence of the ongoing increase in demand
Port Talbot, Pembrokeshire and The Vale of Glamorgan. for first-time-buyer properties.Average house prices over last two years - Wales
£190,000 Wales
Trend
£187,500
£185,000
£182,500
£180,000
£177,500
£175,000
£172,500
£170,000
JUN 17 SEP 17 DEC 17 MAR 18 JUN 18 SEP 18 DEC 18 MAR 19 JUN 19
There are fewer high-value sales taking place in 2019 compared to 2018. It suggests there was an increase in
high-value sales during Q1 2018, ahead of the introduction of the Land Transaction Tax. There was no significant
change in the pattern of buying behaviour between the two years at the lower end of the market.
Wales transactions Q2 2018 vs Q2 2019
12000
Q2 2018
10000
Q2 2019
8000
6000
4000
2000
0
Detached Semi Terraced Flats Total
The chart above compares the number of housing sales in Wales during Q2 2019, with the same three months one year earlier.
Overall, the chart indicates an estimated fall of 0.1% in transactions between Q2 2019 and Q2 2018. The figures show an
increase in sales in Q1 2019 compared to Q1 2018 for semi-detached and terraced properties, up by 6.8% and 2.7% respectively,
but a decrease in sales for detached properties, down by 3.8% and flats, down by 20.1% between the two years. The initial
estimate of sales for the first six months of 2019 is some 21,100 transactions, which is 1% lower than in 2018.
The Principality Building Society House Price Index for Wales is prepared from dataset provided by Acadata using its methodology. It is published as a secondary source of
economic information, but is not intended to be relied on for any commercial or personal decisions and no responsibility is assumed by Principality or Acadata if it is used
contrary to that intention.Average annual and quarterly
change by local authority
1 Newport 22 Anglesey
Average
Annual
-1.7% 4.7% change % -3.5%
-5.5% -3.2%
£198,252 Average 185,710
Quarterly
22
2 Cardiff Change % 21 Conwy
19
-3.6% 3.1% -1.6% 9.1%
21
£226,505 20 £190,586
18
3 Monmouthshire 20 Denbighshire
17
1.1% 3.1% -0.7% -1.7%
£285,741 £172,005
4 Torfaen Annual 19 Flintshire
Growth
2.9% 4.6% 0.9% 0.5%
1.0%
£176,431 Annual £180,340
Decline
5 Caerphilly 18 Wrexham
16
13 -3.1% -0.8%
-0.1% 6.2%
£152,296 £170,495
6 Blaenau Gwent 17 Gwynedd
15 14
-3.7% 5.0% 4.3% 7.1%
£105,798 6 £187,142
7 3
12 11 4
7 Merthyr Tydfil 8 16 Ceredigion
5
10 1
5.1% 5.8% 3.1% 9.8%
2
£128,054 9 £211,378
8 RCT 15 Pembrokeshire
The Principality Quarterly House Price Index has been prepared by Acadata Ltd for the Principality Building
-3.8% -1.0% 8.0% 9.3%
Society. The underlying data used for the house price analysis are supplied by the Land Registry, which records
all housing transactions that take place in England and Wales. The data are subsequently mix and seasonally
£130,145 adjusted by Acadata using established statistical procedures. £204,281
9 Vale of Glamorgan 10 Bridgend 11 Neath Port Talbot 12 Swansea 13 Powys 14 Carmarthenshire
2.8% 7.1% 1.5% 3.4% 6.2% 5.5% -1.1% 7.2% -1.7% 0.0% 5.4% 6.5%
£261,450 £169,980 £135,924 £173,840 £204,548 £166,057
Contact: Jamie Pike I Corporate Affairs Manager I Tel: 029 2077 3812 I Email: Jamie.Pike@principality.co.ukCALL US VISIT ONLINE
0330 333 4000• To find your nearest branch visit www.principality.co.uk
www.principality.co.uk/branch @PrincipalityBS
You can reach us: Principality Building Society
Monday-Friday @principalitybs
8:00am-8:00pm
Saturday 9:00am-1:00pm
This leaflet is available in large print,
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by calling 0330 333 4000•
Where home matters
•
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Principality Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority
and the Prudential Regulation Authority, reference number 155998. Principality Building Society, Principality Buildings,
Queen Street, Cardiff, CF10 1UA. www.principality.co.uk
HPIQ2A4 07/19-1
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