The average house price in Wales has increased by £5,826, or 3.3%, over the last 12 months, to a new high of £179,855, the latest national index shows.
It means that house prices in Wales increased in nine of the 12 months in 2017, while December was the fifth month in succession in which Wales reached a new peak price, according to the Principality house price index.
Overall, house sales in 2017 are estimated to be broadly the same as 2016, although the fourth quarter of 2017 did see a fall of 9% when compared with the same quarter of 2016.
In Cardiff, it is the increase in the price of terraced properties that has helped to secure the new peak of £226,330. Prices for terraces have risen by £3,000 over the last quarter, to an average £200,000, and they make up 25% of total sales.
Newport has seen the highest number of new build properties, reaching a new peak in its average house price of £183,683 while detached homes have seen the highest increase in prices, from an average £220,000 in the fourth quarter of 2016 to £240,000 in the same quarter of 2017.
Pembrokeshire recorded the highest annual rate of change in prices with growth of 8.1%, followed by Caerphilly with growth of 7.3%.
‘House prices in Wales continued to grow as the market bounced back from uncertainties around Brexit and the economy earlier in 2017. However, transaction levels are broadly flat if we compare the numbers sold in 2016,’ said Tom Denman, chief financial officer at the Principality Building Society.
‘Growth was largely due to proportionally more transactions in higher demand areas such as Cardiff and Newport. New builds in areas such as Newport, have resulted in a price premium that has helped to push up average prices in those regions. A shortage in housing supply, high employment, and low interest rates, have all contributed to growth. Similar economic conditions for 2018 indicate that house prices will continue to grow modestly in Wales,’ he pointed out.
‘There has been slow a down in activity recently off the back of the Bank of England interest rate increase. However the removal of stamp duty charges for first time buyers of properties up to £300,000 since the November Budget could drive different first time buyer behaviour before the Land Transaction Tax comes into force in April,’ he added.