Wales sees biggest rise as UK house prices hit new high
Wales’ house prices saw the biggest rise as they hit a new high across the UK in October, according to the Halifax house price index.
Wales was the nation and region to see the biggest increase in prices in October as the average house price rose 12.9 per cent on the same time last year to £198,880.
The news comes as estate agents Hamptons said that house prices in Wales are set to rocket another 17% over the next four years, raising fears that more people will be priced out of buying homes in their own communities.
Since the start of the pandemic, Wales has seen a boom in house prices as people leave cities, and working from home becomes a more viable option.
A Welsh Government consultation on council tax and non-domestic rates was launched by Climate Change Minister Julie James in July to address the impact of second home ownership seen in some of Wales’ communities.
The consultation comes to an end on 17 November 2021.
House prices also continued to rise in Scotland, with the average property now up 8.6% year-on-year (average house price of £190,023).
London has remained by far the weakest performing area of the UK, annual inflation of just 0.8%, from an increase of 1.0% in September, is the lowest year-on-year rise in prices seen since February 2020.
Though at an average of £514,907, property prices in the capital remain well above all other parts of the country.
The average house price across the UK topped £270,000 for the first time, according to the Halifax house price index.
Russell Galley, Halifax managing director, said that an increase in interest rates could cause demand to ease.
Jan Crosby, UK head of infrastructure, building and construction at KPMG, put the rise down to a lack of supply as a shortage of building supplies and lorry drivers meant that new stock could not be built.
“Developers can’t build quickly enough to sell into the strong market, particularly for family housing with outdoor space,” she said.
“There are some tentative signs that sourcing building materials is becoming more straightforward, but lead times can still be very long. Labour availability and wage inflation is now also on the sector’s radar.”