Ceredigion prices jump 21% ‘due to second homes’ say Nationwide amid housing crisis

House prices in Ceredigion have seen one of the biggest jumps across the nations of the UK during the last five years, due to the number of second home buyers there, Nationwide have said.

Ceredigion saw the fourth biggest jump in house prices over the past five years, at 21%, while Pembrokeshire saw the sixth biggest jump at 19%. Prices rose to an average of £244,619 and £231,355 respectively.

The Nationwide report said that big jumps in house prices were correlated across the UK nations with areas closely associated with tourism. This may suggest that demand may be being driven by those buying holiday or second homes.

Andrew Harvey, a senior economist at Nationwide, said: “ONS data suggests that the rate of second home ownership is significantly above average in areas such as South Hams, Pembrokeshire and Ceredigion, areas which are amongst those seeing the fastest rates of growth.”

The coronavirus pandemic and more flexible working opportunities had also prompted some people to relocate to more rural areas in recent years, they said.

The Welsh Government announced an increase to the maximum level of council tax premiums for second homes, as well as new local tax rules for holiday lets, last month.

The measures are part of a wider commitment to address the issue of second homes and unaffordable housing facing many communities in Wales, as set out in the Co-operation Agreement between the Welsh Government and Plaid Cymru.

As part of the changes, the maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300%, which will be effective from April 2023.

Price increase

Nationwide’s report said that prices have risen faster in rural areas than in urban locations over the past five years.

Property values in areas which are mainly rural have risen by 29% over the past five years, while those in predominantly urban areas have increased by 18%, Nationwide Building Society said.

In general, rural detached properties have seen the strongest rates of price growth, while urban flats have recorded the weakest price increases, according to Nationwide.

Between December 2016 and December 2021, rural detached properties increased in price by 32% on average, while urban flats typically added 6% on to their value.

Here are the top local authority areas for house price growth across Britain in 2021, according to Nationwide Building Society, and their urban/rural classifications. The figures show average house prices in December 2021 and the annual price increase:

1. North Devon, South West, rural, £326,848, 24%

=2. South Hams, South West, rural, £420,851, 22%

=2. Rushcliffe, East Midlands, rural, £355,398, 22%

4. Ceredigion, Wales, rural, £244,619, 21%

5. Camden, London, urban, £947,511, 20%

=6. Hastings, South East, urban, £271,432, 19%

=6. Pembrokeshire, Wales, rural, £231,355, 19%

=6. South Norfolk, East of England, rural, £330,003, 19%

=6. Cotswold, South West, rural, £481,402, 19%

=6. Na h-Eileanan Siar, Scotland, rural, £144,755, 19%

=11. Torridge, South West, rural, £293,098, 18%

=11. Vale of Glamorgan, Wales, urban, £287,199, 18%

=11. Mid Devon, South West, rural, £287,337, 18%

=11. Eastleigh, South East, urban, £339,946, 18%

=11. Broadland, East of England, urban with significant rural aspects, £319,182, 18%

=16. Hyndburn, North West, urban, £120,038, 17%

=16. Somerset West and Taunton, South West, rural, £286,910, 17%

=16. Maldon, East of England, rural £399,937, 17%

=16. East Hampshire, South East, rural, £451,320, 17%

=16. Wyre Forest, West Midlands, urban with significant rural aspects, £241,109, 17%