Big slowdown in house price growth in Wales, latest figures show
House price growth in Wales slowed from 14.4% in May to 8.6% in June, according to the Office of National Statistics.
The sharp slowdown raises hopes that spiralling house prices during the pandemic may be starting to come to an end, as a possible recession and surging inflation puts the brakes on affordability.
In Wales, the average prices grew to £213,000, up 8.6% on the same time the previous year.
In England, average house prices increased by 7.3% to £305,000 over the year, while in Scotland prices rose 11.6% to £192,000, and in Northern Ireland they increased 9.6% to £169,000.
Nick Leeming, chairman of estate agent Jackson-Stops, said: “On the same day that inflation has reached double figures, a slight sense of restraint is starting to creep into the property market.
“The impact of the higher cost of borrowing and less consumer spending power is likely to gradually filter through over the rest of the year.
“For now, an expected seasonal dip in activity over the summer months should remain front of mind before we declare a market adjustment.”
UK house prices rose by 7.8% annually in June, with growth pulling back from 12.8% in May.
The latest figure represented the weakest growth since July last year.
Property price increases partly slowed year on year due to a jump last June as prospective buyers sought to strike deals ahead of the end of the stamp duty holiday.
The ONS said the average house price across the UK was £286,000 in June, representing a £20,000 increase against the same month last year.
ONS house prices statistician Ceri Lewis said: “While annual growth slowed, house prices continue to increase and average prices have now reached record levels in England, Wales and Scotland.
“Rents continue to climb across the country, with sustained pick-up in London which saw its strongest growth since the beginning of 2017.”
The statistics body also revealed in separate data that private rental prices paid by tenants grew by 3.2% in the 12 months to July.
It represents an acceleration from 3% in June and is the largest annual growth since January 2016.
Support our Nation today
For the price of a cup of coffee a month you can help us create an independent, not-for-profit, national news service for the people of Wales, by the people of Wales.