Welsh housing market hits 9.4% annual growth

The Welsh housing market continued to grow at a faster pace than other regions in the UK during December, according to the latest e.surv Acadata House Price Index.

Wales recorded the highest annual price growth for the sixth month in succession in the final month of 2021, with an annual rate of 9.4%.

e.surv suggested the “race for space” during the coronavirus pandemic has supported the demand for property in Wales.

“Wales has continued to outperform other regions,” commented e.surv director, Richard Sexton. “The growth of the second homes market in Wales has caught the attention of many commentators and policymakers.

“However, this strong continued performance in Wales has not been repeated across the country where regional fortunes have been turned on their head. There has been a significant change in the fortunes of areas such as the North West which has slipped from second place in June to eighth.

“This is in contrast with the south eastern parts of England. To understand why this has happened we need to appreciate the impact of the withdrawal of the Stamp Duty Land Tax (SDLT) in September.”

Sexton added that the figures over the last 12 months have highlighted the impact that the SDLT holiday has made on the market, but suggested the latest index is now reflecting the impact of the way it was ultimately withdrawn.

He continued: “The staggered reduction of the SDLT tax holiday proportionately helped those buying at the lower end of the price scale, when the savings to buyers were not insignificant if they were buying a property valued at £250,000 – the average price in the East Midlands is currently £251,604.

“But this saving is of lesser significance in the South East, where average prices amount to £443,778. The end of the SDLT holiday has effectively meant that the wealthier regions are now more prominent in the reporting.”

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