Welsh house prices predicted to fall 8.5% next year by property experts
Welsh property values are expected to fall by 8.5% in 2023, according to a forecast by property experts Savills.
First-time buyers and buy-to-let investors will bear the brunt of increased affordability issues next year, adding to pressures on rental prices, according to Savills’ predictions.
It also expects there will be a growing divide in terms of the ability to make property transactions between cash buyers or those with large amounts of equity in their home and those relying on mortgages to make a purchase.
This means that the “prime” – or top end – of the property market is predicted to hold up relatively strongly.
Cash buyers are often found in the prime property market – and so they are more cushioned against concerns about the ability to borrow at a time when mortgage rates are rising.
However, they may still be influenced by weaker housing market sentiment generally.
The prime housing market broadly refers to the top 5% to 10% of homes by value for the geographic region they are located in.
Savills expects that, for example, house prices in prime central London will fall by 2% next year – a much smaller decrease than the 10% drop expected generally across Britain.
Looking across Britain’s mainstream housing market, Savills expects that, despite predicted drops next year, by the end of its forecast period, in 2027, the average house price will reach £381,578 – marking a £22,290 gain over the five-year period.
Wales is predicted to see a 11.1% growth over the same five year period, against a UK average of 6.2%.
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Any fall should be good news. However it may make it better for cash buyers rather than people who have to raise mortgages and all the other k-rap that goes with buying a home.
Welsh house prices dropping is good news for FTBs.
HOWEVER, there need to be protections to prevent housing stock being bought up by greedy BTLers