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Housing crisis: Wales has fastest house price growth in the UK

26 May 2021 3 minute read
The coastal village of Aberdyfi, Gwynedd. Picture by Llywelyn2000 (CC BY-SA 3.0)

Wales has the fastest house price growth in the UK, according to a new report.

The property website Zoopla found that annual house price growth in the UK is at 4.1%, up from 2.3% a year ago, while it is at 6.3% in Wales, amid fears that young people are being priced out of their own communities in many areas.

This compares to growth of 5.4% in Yorkshire & the Humber and 1.9% in London.

Zoopla said its projections indicated the property market in 2021 was on course to be the busiest for 14 years.

The value of UK sales in 2021 is forecast to be £461 billion, up 68% from 2019, however the total stock of homes for sale remains constrained, down 20.8% in the year to mid-May compared to the average last year.

The time between a listing a property and securing a sale subject to contract (SSTC) has also fallen by between 10-15 days in Wales, the north west of England and Yorkshire & the Humber, and this is accompanied by the highest levels of price growth.

‘Highest price growth’ 

The report says: “Wales, Yorkshire & the Humber and the North West are the regional markets registering the highest price growth.

“They are arguably also the ‘hottest’ regional markets at present – as these markets are also among those where the market is moving more quickly than the ‘normal’ market conditions in 2017-2019.

“The time between a listing a property and securing a sale subject to contract (SSTC) has fallen by between 10-15 days in the North West, Wales and Yorkshire & the Humber, and this is accompanied by the highest levels of price growth.”

Gráinne Gilmore, Head of Research at Zoopla said: “The easing of lockdowns will continue to cause a natural fall in demand as people are able to see family and enjoy amenities that have been shut for more than a year. However demand levels will remain elevated compared to historical norms.

“New buyer demand will still emerge throughout H2 as office-based workplaces confirm if they will be pursuing more flexible working practices.

“Households who have the opportunity to commute less frequently have more options when it comes to choosing where to live, and this could prompt a move.

“Likewise, older households will continue to review how and where they are living, with many more set to move for the first time in years. With an increased array of mortgages to choose from, first-time buyers will also remain active in the market.”


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Quornby
Quornby
2 years ago

Our young people priced out of their home areas by incoming second homers. When I wonder will the Welsh Government get off its back side and take some meaningful action?

Mab Meirion
Mab Meirion
2 years ago
Reply to  Quornby

I suggest we compile a list on here…if there is room…

1) Coleg Harlech

Gill Jones
Gill Jones
2 years ago

I was in Aberteifi this morning and the town was full of tourists, many with their noses pressed up to the windows of various Estate Agents! A quick glance revealed a terraced house in Llandudoch for sale for 335K!
How on earth can local families ever hope to afford such prices? Mae rhaid i Lywodraeth Cymru weithredu NAWR!

Wrexhamian
Wrexhamian
2 years ago

This is going to continue, pandemic or no pandemic, until the Welsh Government takes effective action to control the free-for-all that is the Welsh housing market – preferably starting tomorrow morning. And it’ll take more than raising council tax and the need for registration; it must be enshrined in Welsh law that local people have first refusal on housing in their own locality in those areas currently dependent on tourism.

Last edited 2 years ago by Wrexhamian
Mab Meirion
Mab Meirion
2 years ago
Reply to  Wrexhamian

Excuse my asking but how do you edit comments?

Wrexhamian
Wrexhamian
2 years ago
Reply to  Mab Meirion

Move your cursor onto the little spikey circle at the bottom right of your comment (about an inch below the flag icon). Click on it, and a box saying ‘Edit’ appears. Then click on that, and edit your comment and save. Useful if, like me, you forget to check your spelling mistakes.

Last edited 2 years ago by Wrexhamian

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