Mortgage News
Premium property sales boost Welsh house prices
Welsh house prices have risen 2.4% in the past year, largely due to an increase in premium property sales, according to LSL Property Services.
House prices in the country hit £152,448 during May, marginally down on April’s figures but 2.4% up on the same month in 2011.
However, warnings have been issued about the possibility of a two-tier housing market forming, with a small number of areas contributing most of the yearly growth.
Property prices in the Vale of Glamorgan grew by 18.1% with prices in Cardiff up 5.2% as growth centred on the capital city and immediate areas. By contrast, prices in the Blaenau Gwent area fell 8.6%.
Richard Sexton, director of e.surv, commented: “Given how difficult it is to get a mortgage at the moment, an annual rise in prices of 2.4% is a real victory for the housing market.
“Predominantly, though, it is wealthier buyers and equity-rich retirees who are sustaining sales-levels, which has helped nudge up prices. It’s created a two tier market where prices tend to vary regionally depending on the number of wealthier buyers.
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“Prices have held up well, and even seen significant increases, in areas with plenty of wealthier buyers, but have fallen in areas with more first time buyers.
“The main stumbling block to a fluid housing market is a chronic lack of mortgage finance. It is marooning first time buyers in the rental market, which keeps sales levels suppressed and stops house prices growing.”