House prices in Wales to be almost decimated in 2023 warns real estate company
A real estate company has predicted that house prices will be almost decimated in Wales over the next year.
Savills are predicting a 8.5% drop in house prices in Wales in 2023, and say that it could take up to three years for prices to recover to current levels.
Wales is expected to fare slightly better than the other nations of the UK, however, with England seeing an overall 10% drop in house prices in 2023. Scotland will see a 9% drop.
The fall in prices will come after Wales saw some of the largest rises in house prices in the UK over the last three years, as the rise in home working and ‘race for space’ during the pandemic led to 26.3% rise in prices according to UK Government statistics.
Savills had originally predicted just a 1% fall in house prices in 2023 but the disastrous mini-budget that sent mortgage rates skyrocketing has contributed to an expected deeper fall.
Those who want to move will sit on their hands and buy to let activity will drop off, they said.
Given the prospective path of the Bank of England base rate, the estate agent expects to see mortgage rates elevated through 2023 and well into 2024.
Wales will see a rise of 2% in house prices in 2024 and 3.5% in 2025, meaning that house prices will not return to 2022 levels until 2026, they said.
‘Fair’
Welsh Government plans to restrict second homes and holiday lets in Wales could also have an impact on bringing down house prices in some communities where they are out of reach of those living permanently in those areas.
From April 1 councils will be able to charge a maximum premium of 300% on top of the standard rate of council tax on second homes.
The number of days holiday homes will need to be rented out to avoid being classed as second homes will also be nearly trebled.
Announcing the changes last month, Rebecca Evans, Minister for Finance and Local Government, said the move was intended to strike a balance between the needs of communities with large numbers of second homes and holiday lets as part of a sustainable tourism sector.
“These changes will give more flexibility to local authorities and will ensure that the contribution property owners make to the communities where they have homes or run businesses is fair,” she said.
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TLDR: Landlords and people richer than you may have a modicum of financial discomfort in 2023, you still won’t be able to afford a house and your children still have no future.
This is good for first time buyers, right?
It might well be. It’s revealing of their mindset that estate agents are viewing greater affordability of housing for local communities as necessitating a “warning”. A warning to whom? Sounds on paper like a good thing.
These parasites were at the heart of the “boom” of recent years initially driven by “big city” types wanting to move out into more remote locations where they could engage in home working. All that “boom” achieved was to accentuate the differentials between low earning just about surviving people and the incredibly well to do from the big cities who had stacks of reserved equity and/or borrowing power enabling them to compete for relatively scarce bricks and mortar. People should not be frightened of a 10% drop in prices as it still won’t take us back to where things were… Read more »
I’m from Gwynedd, and after losing my job in the pandemic and getting zero furlough (as it was a new job), I finally got a job working from home. I’ve saved for 14 years for a deposit, lived a more frugal life than my peers, but as I’m a single buyer I still can’t outcompete most buyers, despite having a hefty deposit. I look at houses that are listed for 100 – 120k and I call the estate agents – every house already has offers that well exceed the asking price and I can’t outbid them. I’ve been told that… Read more »
“…….Will it really make a difference for people like me? Or will it simply make even more places affordable for the insatiable appetite of the middle class to run an Air B & B……” That’s the big question. Preventing the further shift of houses from “homes” to “invested assets” can only be achieved by targetted regulation and control which all governments are unwilling to do. Perhaps a crash in the stock market might be more useful as that would reduce the collateral of a lot of the carpetbaggers eating into our housing stock.
It wont help first time buyers at all, as there wont be any work for them to get a mortgage when the 2nd home owners put their houses for sale as they are the spenders in gwynedd area.
Cheaper housing and greater availability will help our youngsters and first time buyers, but it will also attract speculators looking for their second, third or fourth homes. There are plenty of them out there. Expect to see The Sunday Times and The Daily Telegraph with “Come to Bargain Wales” property articles
Yes, that’s exactly what I’m worried about, too. The richest always win, unless we change the rules.
Unregulated estate agent predictions… Might as well be listening down at the pub late Saturday night.
Wales is expected to fare slightly better than the other nations of the UK, however, with England seeing an overall 10% drop in house prices in 2023. Scotland will see a 9% drop.
Does this publication concur that high house prices are a Good Thing?
The cost of buying a house in Wales is unaffordable to most WELSH CITZENS because the wages in Wales are not high enough hence outsiders from across the border English migrants are buying them so houses becoming cheaper must be a good thing for Welsh people
So will the Welsh Gov. now get ready to buy cheap and then “let to buy” for our people?
Also, don’t expect to see any recovery from the coming slump while Westminster uses the sanction system, which boomerangs back, as you now clearly see.
While the EU and UK crash, an Independent Cymru, with whatever recourses we possess, should be our future. Let it be modest and secure.
Savills know no more than anyone else about the future- the article shows how they first of all predicted a 1% fall now this. I find estate agents are so full of their self importance when infact they are just glorified salesmen/women. If they could predict the future they could make more money on a racecourse!!
Saville labels this as a warning because it discourages property investment by rich wasters not everyday people. This will make property more affordable. What they aren’t saying is that although house prices are set to decrease, rental is set to increase because of a significant lack of housing stock in many areas. The next few years are a good opportunity to buy if you can manage it.
It’s good to see “decimated” used in its real sense
Well now darling darlows ! Pls ask your vendors if they will accept my offer of 3.5k. because I’m feeling in a generous mood today 😊 only today mind I
😂🤣
Let’s face it 😂 estate agents. Vets. Solicitors. Insurance companies the pharmaceutical industries. Criminals with with halo’s 🤔👀😇🤐🥳🤣😂😅😂😭
8.5% Decimation my arse! I lost a whole house because of the Tories stupidity in the 80s his daughter is a decent chef but he’s a tosser!
The best thing to happen to wales would be for house prices to fall by 50%.
why the welsh govt is not building more houses I do not know.