MAY 2022
WA L E S M A R K E T U P D AT E
KEY STATS W AL ES
£460,000
£599,266
6.92%
£307
£1.21bn
71
LATEST DATA
QUARTERLY CHANGE
ANNUAL CHANGE
70,691
4.8%
-14.5%
RESIDENTIAL TRANSACTIONS (MTH)
114,650
21.8%
-35.7%
GROSS MORTGAGE LENDING (MTH)
£26.5bn
18.8%
-23.1%
59,524
-5.6%
-8.6%
247,393
-
8.2%
MORTGAGE APPROVALS (MTH)
NEW HOMES BUILT (QT) NEW HOMES BUILT (ANNUAL)
2 I PREMIUM MARKETS I WALES
MARKET OVERVIEW S HA B U Y EARU T AU PM P ENT I T E PD R EE SV A I L S Brexit and themarket budgettohave over the to past ter, economic and while issues the The housing datedominated in 2022 hasheadlines proved immune thequar wider latter provided for theThe realmarket estate is market, the the dealdesire or noto deal question that are makingfew thefireworks daily headlines. busy and move remains continues to linger. has been positive in recent weeks; now allnot eyes are on on the agenda for Rhetoric many. However, themore question being asked now is when, if, the the EU summit mid-November. Despite the uncer annual house price growth market will startin to calm after the latest interest rate tainty, increase to 1%. remains positive across England and Wales, except London, although transaction levels remain muted. ACTION-PACKED
As witnessed in the same period last year, the first quarter of WATCHING AND WAITING 2022 proved busy for those looking to buy or move home. Over was 330,000 saleseconomic took place and inmortgage approvals were There positive news the UK government's up 13% on the last ‘normal’ market year of 2019. value Budget: eight years of economic growth, 3.3 millionThe new jobs of mortgage lending was over 16% higher (Dataloft, HMRC, since 2010 with 800,000 more forecast by 2023, and wage Bank ofatEngland). growth its highest level in nearly a decade. Independent forecasts from the Office for Budget Responsibility (OBR) Demand the market remains high, survey for Nationwide also predictin inflation to fall back to theagovernment’ s target 25% thoseHowever, in the region currently sales were volumes ofindicating 2% overthat the over course of of 2019. in the process of moving wereinconsidering doing so. remain low, down 4.4% in or Wales the three months to While new instructions to the market have risen marginally, September compared to a year earlier. After a brief they have failed tothe keep pace with appetite. Rightmove reprieve over summer the buyer number of mortgage report there arethe twice approvals across UKas hasmany also buyers slowed.as properties for sale in the market, with all regions seeing the amount of stock-toWhile house price low. growth across much of the UKproperties is slowing, purchase running Year-on-year, 6.7% fewer Wales is bucking the national trend. At 6.2%, annual house were available to sell across Wales in the first quarter. There price growth in Wales currently exceeds the UK average of was less than two months’ of stock left to sell, compared to a 3.2% in the year to August (UK HPI), up from 5.1% a year historical norm of around four months (TwentyCi). earlier. Across the prime market, prices have risen by 2.7% over the past year.
A TURNING POINT
BUDGET WINNERS AND LOSERS The Chancellor’s Spring Statement in March set the tone
that 2022 would prove challenging for many households. Across England housebuilders and first-time buyers were Although average weekly earnings rose 4.3% year-on-year the main real estate beneficiaries of the Autumn Budget. A in April, wage growth is failing to keep pace with price suite of initiatives was announced to support house building, rises.the At 7%, inflation is atofathe 30-year high, and while announcement extension untilalthough March 2023 the Bank of England has raised the base rate of interest to of stamp of the Help to Buy Equity Loan and the inclusion 1% –relief its fourth rise since December – it is predicted to rise duty on shared ownership properties both aid firstfurther. Economic uncertainty has long impacted consumer time buyers. confidence, which has fallen back to levels lower than during Across Wales, the situation is different. Since April 2018 the initial Covid-19 shock (GfK). first-time buyers have received no Land Transaction Tax relief on their however rate no tax is payable onhistoric At 2.05%, thepurchases, average mortgage remains low by properties less than £180,000, a threshold £55,000 higher standards and many households are cushioned from any than across England. Nearly two-thirds (63%) of properties sold across Wales during the last year were below this threshold.
immediate impact thanks to fixed-rate mortgage deals. However, household savings as a proportion of income Budget did announce million for haveThe fallen significantly (ONS)an andadditional research£550 by Nationwide Wales, taking its devolved budget to £16.1 billion in indicates that nearly two-thirds of households (64%) are 2019/2020. In addition, an extra £120 million was needing to make changes to their spending for the first time announced to support the North Wales growth deal and in their lives. Financial reasons are a motivating factor for the borrowing powers of the Welsh government were 17% of those who are currently in the process of moving or boosted by £300 million to aid key projects such as the M4 considering a house move. relief road. In terms of house building, PRICES REMAIN FIRM the Housing Revenue Account
(HRA) borrowing cap, will be removed from local authorities in Wales, as in England in athe bidscarcity to stimulate Despite the wider economic challenges, of the provisiontoofpurchase more new Across all sectors,has in been the 12 properties hashomes. meant that competition June a total of 6,002prices new for dwellings highmonths and thistohas acted to sustain sellers were in thestarted acrossMore Wales, 19% than during 12 months market. than halflower of properties arethe currently sellingtoatthe end of June 2017, and 6,157 new dwellings were completed, or above initial asking price, with properties sold subject to 15% lower than during times. the previous 12-month period.time contract (SSTC) in record At 32 days, the average taken to sell a property (SSTC) in Wales during March is the quickest record (Rightmove). THEonVALUE OF PRIME The Welsh Revenue Authority netted million in Land Month-on-month and year-on-year, prices£160 remain on an Transaction Tax from Wales in the year to the end of March upward trajectory. For only the second time ever recorded, 2018, up 14.3% on a year previously and the second highest asking prices across all regions and all sectors of the market of any region across England and Wales. was aided roserise in March, although the rate of monthly priceThis increase is by a rise in sales volumes, which were up 5.7% compared slowing (Rightmove, UK HPI). The latest data from the UK to the Price year previously. Nearly one property quarter (24%) of receipts House Index indicates annual price growth in were attributed to the purchase of additional properties, Wales is 14.2%. Although the rate of annual growth across with £60 million raised from the 3% additional levy alone. the region’s prime markets has calmed to 6.9%, this is against Just under one-fifth of all residential taxation receipts were the backdrop of significant rises over the past year. from properties priced over £500,000.
In Wales and Scotland, Zoopla price inflation over The average price for primeestimate market property exceeds the£500,000 past two years pushed 360,000 across the in twohas areas across Wales: homes Barry and Cardiff. stamp duty threshold. In Wales, the Land Tax However, it is the prime markets acrossTransaction Newport and threshold is £180,000. Wrexham that are currently experiencing the highest level of price growth, where average prices of prime property have risen by 9% and 8% respectively over the past year.
PREMIUM MARKETS I WALES I 3
PREMIUM MARKETS T OP 5 % B Y R EG I O N
£386,000 £527,811 +2.7% £262
£489,000 £683,816 +3.9% £343
£475,000 £644,033 +1.2% £322
£550,000 £738,124 +4.3% £364
£500,000 £666,990 +2.5% £311
£460,000 £599,266 +6.9% £307
£717,000 £990,619 +5.3% £468
4 I PREMIUM MARKETS I WALES
£789,000 £1,082,348 +5.8% £517
£948,000 £1,383,185 +7.3% £564
£1,550,000 £2,505,328 +1.4% £1,171
TOP 5% W AL ES P R EM I U M M A R K E T
£423,000 £553,294 +10% £266
£320,000 £405,273 +22% £204
£315,000 £372,442 +4% £216 £428,000 £545,220 +4% £267
£500,000 £626,953 –2% £346
£460,000 £603,970 +8% £300
£685,000 £847,223 +9% £341
£557,000 £704,942 +10% £365
PREMIUM MARKETS I WALES I 5
TOP 5% W AL ES P R EM I U M M A R K E T
PROPERTIES SOLD ABOVE THE PREMIUM PRICE THRESHOLD
The premium price threshold is the value over which the top 5% of property sales occur. The chart shows a rolling 12 month change in the average price paid for premium properties compared to the previous 12 month.
WALES
20%
15%
10%
5%
0% APR 2021
MAY 2021
JUN 2021
JUL 2021
AUG 2021
SEP 2021
OCT 2021
NOV 2021
DEC 2021
JAN 2022
FEB 2022
MAR 2022
Source: Dataloft, Land Registry
BY PROPERTY TYPE OVER THE LAST 12 MONTHS, PROPERTIES SOLD ABOVE THE PREMIUM PRICE THRESHOLD
An individual premium price threshold is calculated for each property type based on sold prices in the last 12 months. The chart shows the average price paid per square foot for all of these premium properties.
WALES
£400
£360 £300
£291
£304
£328
£307
£200
£100
0 FLAT/APARTMENT
TERRACED
SEMI-DETACHED
DETACHED
ALL PROPERTY Source: Dataloft, Land Registry
6 I PREMIUM MARKETS I WALES
MAINSTREAM W AL ES M A I N S T R E A M M A R K ET
ALL PROPERTIES SOLD ACROSS THE REGION
Chart shows a rolling 12-month change in transactions compared to the previous 12-month period. PLEASE NOTE: Caution should be taken when viewing this chart due to the continued delay in recording Land Registry sales.
WALES
Transactions
60%
Average sales price
40% 20% 0% -20% -40% MAR 2021
APR 2021
MAY 2021
JUN 2021
JUL 2021
AUG 2021
SEP 2021
OCT 2021
NOV 2021
DEC 2021
JAN 2022
FEB 2022
Source: Dataloft, Land Registry
BY PROPERTY TYPE OVER THE LAST 12 MONTHS OF ALL PROPERTY SALES
WALES
Average price paid per square foot for all property transactions.
£320
£240
£237 £198
£193
£160
£189
£155 £80
0 FLAT/APARTMENT
TERRACED
SEMI-DETACHED
DETACHED
ALL PROPERTY Source: Dataloft, Land Registry
PREMIUM MARKETS I WALES I 7
KEY STATS W AL ES
£184,399 £460,000 £599,266
£128,916 £295,875 £372,805
£138,081 £301,750 £385,824
£180,066 £359,998 £451,969
£297,897 £630,213 £792,920
£189,489 £470,266 £610,521
T: +44 (0)207 079 1515 E: parklane@fineandcountry.com fineandcountry.com
Disclaimer :This repor t is produced for general information only.Whilst ever y effor t has been made to ensure the accuracy of this publication, Dataloft Ltd accepts no liability for any loss or damage of any nature arising from its use or from any changes made to Dataloft content by Inform users. Reproduction of all or par t of the repor t in any form is prohibited without written permission from Dataloft Ltd. Repor t edited by Inform user and published on 06-05-2022.
Please note, HM Land Registry transaction figures since March are lower than usual due to the impact of Covid-19. They are likely to be revised upward. dataloft.co.uk