Welsh property prices fall despite rise in sales

Welsh property prices fell marginally by 0.3% in August compared to the previous month, despite a 12% increase in property sales, according the latest LSL Property Services/Acadametrics Wales House Price Index. The Index shows that the average price of a home declined by £416 month-on-month to an average of £151,004 – the fourth monthly decline in a row. The Vale of Glamorgan saw the highest rate of capital growth, with values up 9.3%, followed by Ceredigion, up 5.6%. The biggest fall in values was recorded in Torfaen, down 6.1%. Some 15 of the 22 unitary authority areas in Wales saw a decline in average prices over the year, three more than in July. Nigel Favas, managing Director of Reeds Rains estate agents, blames that lack of mortgages for the fall in Welsh property prices, but he believes that there are tentative signs that market conditions are improving. He said: “The market is certainly stronger than last year - prices climbed on an annual basis during most months, albeit this climb was followed by a small fall in August. The upside of lower prices is it becomes easier for first time buyers to get a foot on the ladder. “Although mortgage finance is scarce, and the Welsh economy is weaker than its English counterpart, some solace can be found in the rising number of sales in Wales which have climbed 12% compared to July. Admittedly this reflects as much the weakness of July as it does an improvement in the market.”

Article courtesy of Property Investor Today
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