House prices in Wales continue to face an uphill struggle as they have fallen by £1,530 since the start of the year.
According to a report by LSL Property Services, house prices in Wales fell by £373 in August and are £1,344 lower than twelve months ago.
However, Richard Sexton, director of e.surv chartered surveyors, part of LSL, there is reason to be optimistic as sales activity is growing and first-time buyer activity has bounced back.
“House sales in Wales have continued to rise and, for the second month running, have reached a three and a half year high”, Sexton pointed out.
“It’s hugely positive to see the increase has been largely universal across all sectors of the market. First-time buyers have unlocked property chains, allowing sales to ripple higher up the ladder.
“First-time buyers now make up a larger part of the property market in Wales, which has caused the fall in average house prices. More first-time buyers mean more properties have been purchased at the lower end of the market, therefore lowering the average value. In the long term the rise in first-time buyer activity will make the market healthier, as sales from second-time buyers and home movers will boost levels and help drive prices upwards again.
“On a regional level, Cardiff had the biggest rise in sales in August due to the boost in the sale of detached and semi-detached properties which is barely the preserve of first time buyers. Demand is rising across the board and it is good to see there has been a rise in sales across all buyer types.
“The Government’s Funding for Lending and Help to Buy schemes have stimulated the market significantly. An array of attractive mortgage products have entered the market left, right and centre thanks to increased mortgage supply and the rise in competition between lenders. The more progress made in the first-time buyer market, the more likely it is we will see green shoots of recovery and more buyers tempted to step back into the market.
“The Welsh market needs to focus on house building to give it the shot of adrenaline it needs to fuel growth and return to a full recovery.”
