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Concern as houses in rural west of Wales see double digit price rises over last year

17 May 2021 3 minutes Read
Benllech on Anglesey. Picture by Joe Hayhurst (CC BY 2.0)

House prices in rural west Wales have risen by double digits over the past year, leading to concerns that more will be frozen out of living in their own communities.

The figures released from Principality Building Society’s Wales House Price Index demonstrate the rise and fall in house prices in each of the 22 local authorities in Wales.

Over the last year, house prices in Carmarthenshire have risen 14.2%, Ceredigion 10%, Gwynedd 10.3% and Anglesey 14.6%.

The Principality Building Society said the prices reflected a Covid-induced “race for space” as city dwellers from Wales or England looked to move to more rural areas.

Across Wales, annual house price inflation climbed to 10.1%, the first double-digit percentage increase since 2005. Swansea saw the steepest price rises at 16.1%, while Monmouthshire only saw a 2.9% rise.

“Average house prices in Wales continue to set new records as they reached £212,751, with annual house price inflation climbing to 10.1% in Q1, the first double-digit percentage increase since 2005,” the Principality report said.

“Lockdown-inspired changes in housing demand and government policy interventions around Land Transaction Tax (LTT) have boosted prices and activity, with sales up by 40% on the same period last year.

“The prices of detached, semi-detached and terraced homes are 10% or more above year-earlier levels.”

Tom Denman, Chief Financial Officer at Principality Building Society, said that the bounce-back of the housing market during the pandemic had been “stronger than some had anticipated”.

“If that momentum is maintained, it may be that the strong housing market recovery will continue through the rest of the year and into 2022,” he said.

‘Complex’

Yesterday the new Minister for Education and the Language promised that the Government will tackle the housing crisis in the most Welsh-speaking areas.

Jeremy Miles said that action was needed “to ensure that we have Welsh-speaking communities that thrive in the future and that people can afford to live in their communities”.

On Radio Cymru’s Dewi Llwyd radio programme, he confirmed that the Government was considering a report by academic Simon Brooks on the problem of second homes.

He described it as a “complex problem”, with several different factors affecting each other – it would be necessary to look at the “complete picture” to find solutions, he said.

The problem is heightened by the pandemic as thousands of people move from the cities to live or buy holiday homes – one of the most controversial examples is a cottage in Uwchmynydd near Ynys Enlli, which is on sale at auction with a guide price of £500,000.

Language campaigners have announced a protest at Tryweryn dam in July calling for the government to act on the housing market forces they say are undermining communities across Wales.

Covid-19 restrictions permitting, hundreds of Cymdeithas yr Iaith protestors will stand along the 600-meter dam near Bala.

The demonstration on 10th July is set to be filmed by drone and will be broadcast live on social media. Ahead of this symbolic act, the crowd will be addressed by Dafydd Iwan and Delyth Jewell.

 

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Wrexhamian
Wrexhamian
26 days ago

This is only going to get worse unless the Welsh Government steps in with some serious legislation. They should consider adopting the Jersey model for house sales, not only in the tourist areas, but in Swansea, too.

hdavies15
hdavies15
26 days ago
Reply to  Wrexhamian

You could make a case for it for most of Wales, especially the rural bits. It not just a case of “the dreaded Sais” coming in and snapping up properties along the west coast, the Gower and Lleyn but we also have a moneyed crew in the S.E of Wales, Cardiff “professionals” for instance, who have just as big an appetite for rural retreats, some as second homes and some as a new base to engage in home working. It looks like the shape of things to come so we may as well make them pay through the nose for… Read more »

50517
50517
25 days ago
Reply to  Wrexhamian

Isn’t the answer for Welsh vendors to accept far lower prices for their properties when a “local” is buying?

Or does this – in your words – more civilised nation want to make money out of property just like everyone else?

Welsh owner can sell at high price.
Foreigner piece of s**t for paying Welsh owner that high price.

Straight from the failed nationalism of Jac o’ the North.

Wrexhamian
Wrexhamian
25 days ago
Reply to  50517

Yes, that’s the basis of the Jersey model: a two-tier price system protected by legislation. But you shouldn’t be referring to foreigners as pieces of s**t.

Ric
Ric
26 days ago

A lot of this must surely be from the “ripple effect” of rising prices driven by Foreign Direct Investment in property in London and other UK cities. Don’t expect it to end anytime soon as Westminster Govt and the City of London can not afford to permit another property bust as it would put the banks at risk again. For the same reason nothing substantial will be done to rectify this obscene shortage of affordable housing. Foreign investors buy UK property as a safe haven for their wealth….perhaps it is time they paid a bit more towards the maintenance of… Read more »

hdavies15
hdavies15
26 days ago
Reply to  Ric

Yes indeed. Some of these foreign owners are of dubious backgrounds anyway with ownership often vested in some tax dodging offshore entity. Instead of giving these spivs tax deals for coming here they should be on the receiving end of some special levies so that they would contribute to the provision of local services and reinvestment in social housing for “normal” people. Frankly I don’t think that a crash in prices at the extreme end of the elite housing sector would ripple much into our sub economy here. If banks have been laundering money for these crooks then let them… Read more »

Ric
Ric
26 days ago
Reply to  hdavies15

It is a terrible reflection on the UK that we are happy to provide safe refuge for foreign wealth but not for local citizens.

The UK Govt changed the law a few years ago on bank bail outs. The situation now is that should 2007/8 happen again, then depositors who are actually just creditors would have to bail out the banks and receive virtually worthless shares in exchange.

hdavies15
hdavies15
25 days ago
Reply to  Ric

The kleptocracy does well whichever way the winds of economic fortunes blow. That our politicians are now so tightly bound into this class of manipulative rogues is a major cause for concern as there is no obvious countervailing power.

Ric
Ric
25 days ago
Reply to  hdavies15

Yes indeed so. You could say we used to be known as a “Nation of Shopkeepers” but now perhaps heading towards becoming “A Nation of Rentiers” would be more fitting.

Derek
Derek
26 days ago
Reply to  Ric

I agree. Try buying a 2-bedroom flat in Edinburgh…

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