While nationally the average property price has risen slightly this month, Rightmove reports that the increase is muted for this time of year. In addition, in Wales the average house price has dropped slightly. This has been driven by the number of homes for sale – currently at a 10-year high – alongside the stamp duty increasing from April this year. Read more about the property market nationally and in West Wales in this month’s House Price Index overview, including insights from Rightmove and Zoopla.

In Brief

Nationally the market has seen – 

• The average price of property coming to market for sale rises by 0.5% (+£1,805) this month to £367,994 – a muted price rise for this time of year¹.
• The number of available homes for sale is at a 10-year high, moderating the New Year price surge¹.
• The stamp duty deadline will impact some regions and movers more than others, with a conveyancing log-jam expected¹
• There are more than 550,000 homes sold yet awaiting legal completion, 25% more than at this time last year¹.
• January was a record month for applications for a Mortgage in Principle on Rightmove, 49% more than January 2024¹.
• Moving activity remains robust after the first full month of 2025 compared to a year ago, with the number of new sellers coming to market now 13% ahead, buyer demand 8% ahead, and sales agreed numbers up by 15%¹.
• Zoopla says that sales agreed are up 10% year-on-year, as 11% more homes come to market².
• House price inflation ticks lower to 1.9% in response to higher mortgage rates and rising buying costs from April².
• The value of houses has increased 24% over the last 5 years, that’s 3 times faster than the value of flats, which have seen 7% growth².
• The price gap between houses and flats is now at a 30-year high (with houses worth nearly twice the price of flats)².

In terms of the Welsh property market –

• The average house price in Wales is now £255,316, down 2.7% over the last month and down 0.2% year on year¹.
• The average number of days for a Welsh property to find a buyer has increased to 88¹.

¹Source – Rightmove

²Source – Zoopla

National Overview

Here is our monthly overview of the trends that Rightmove and Zoopla – two of the biggest names in the property market – have been seeing over the last month. 

Rightmove’s Insights – 

Rightmove says that the average price of property coming to the market has risen by just 0.5% over the last month – and now sits at £367,994. This is a subdued increase after a fast start to the year, and sits below the longer-term average of +0.8%. 

Rightmove believes the lower price trend appears to be a proactive response to the higher costs of stamp duty in England (from the end of March) and a reaction to the record number of sellers coming onto the market early in 2025. It says that the average number of homes for sale (per estate agency branch) is running at a 10-year high, reducing the pricing power of sellers. 

In terms of the imminent stamp duty changes, Rightmove highlights that they will impact some regions and types of movers more than others. While many first-time buyers in lower-priced areas won’t be affected by the change, other first-time buyers purchasing a home between £500,001 and £625,000 will pay an additional £11,250 in costs if they miss the end of March deadline. The anticipated scramble to complete in time is also predicted to create a conveyancing log-jam.

Zoopla’s Insights – 

Zoopla highlights that the sales market continues with its positive momentum, with all key measures of market activity running 10-11% higher than a year ago. It says that sales agreed are 10% higher, and the number of homes for sale is 11% higher, meaning there are now more buyers in the market. 

But, it says that while market activity continues to rise, the annual rate of house price inflation is edging lower. It increased +1.9% in the 12 months to January 2025, slightly down from the +2% in December 2024. In addition, there continues to be a north-south divide with house price inflation. Average prices are 3% higher in the North West for example, while in London and southern England prices have risen by just 1% to 1.2% over the last year.

Zoopla also highlights the impact of the stamp duty changes, which may also be moderating house price inflation as buyers start to factor in the impact of the change. It says that from April 2025, half of homeowners will end up paying an additional £2,500 per purchase, while another third of homeowners will pay up to this level. 40% of first-time buyers will also pay more stamp duty, up from 20% at present. 

As a result of these additional costs, home buyers will adjust their offers, typically looking to split the cost with the seller. Zoopla adds that while in monetary terms the differences aren’t large, the overall impact will keep house price inflation in check through 2025.

Regional Insight from Cardigan Bay Properties

We specialise in the property market in West Wales and monitor developments here throughout the year to give you the best, most accurate advice. We cover the key regions of Ceredigion, Carmarthenshire and Pembrokeshire, and this month Tania Dutnell, one of our founders, outlines the key trends we’ve seen through February 2025. If you’d like to find out more please get in touch. 

Over the last month it’s the lower end of the market that we’ve seen significantly pick up, with more viewings and offers made on properties in this price range. First time buyers are gaining more confidence, and this is the key driving force behind the boost to the market.

Larger homes however are moving more slowly. The large number of properties on the market means that it continues to be a buyer’s market and remains very price sensitive. As a result, buyers are shopping around and taking their time to make offers. While the surge in the lower end of the market will have a knock on effect, it will take several months for the more expensive end of the market to catch up.

It’s also worth noting that second home owners are still particularly concerned about the additional council tax increases that are coming into force. The changes will inevitably drive more second home owners to sell as they see the rising costs, alongside increases in water rates, electricity and more. As a result we’ll see even more properties on the market, adding to the need for sellers to price realistically.

Finally, because it is such a buyer’s market, we are consistently seeing offers below the asking price – generally around 10% lower. Sellers need to consider their position, price according to their situation, and ensure their home is in top condition to attract viewings and secure a strong offer.

Your Regional Insights

Here we give you an overview of the latest House Price Index results for our key regions – Ceredigion, Pembrokeshire and Carmarthenshire. Please note, that each month these figures are two to three months behind due to the Land Registry taking longer to register new sales, so this report includes sales up to the end of December 2024.

To help you follow the trends for these regions, the graphs below show figures from July 2019 (pre-Covid pandemic) to December 2024.

CEREDIGION

December 2024 saw the average property price in Ceredigion fall to £235,575 (down from £244,216 in November 2024). This drop was seen across all property types. The average price of detached properties fell to £315,112 (down from £326,214); semi-detached properties fell to £201,831 (down from £209,134); terraced properties fell to £178,445 (down from £185,503) and flats fell to £114,972 (down from £119,410).

In terms of the yearly percentage change, overall the average property price fell by 2.4%, with the biggest drops seen in detached properties (down 3.4%) and flats (down 2.6%). Terraced properties saw the smallest fall – down 1.1%.

However, looking at the monthly percentage change – which was down 3.5% overall – the biggest drop was for terraced properties (down 3.8%), followed by flats (down 3.7%). 

View the full Ceredigion report.

PEMBROKESHIRE

Average property prices in Pembrokeshire remained fairly constant in December 2024, showing just a very slight increase – up to £219,598 this month, compared to £219,527 in November 2024. It was detached properties and semi-detached properties that benefited from the increase, while terraced properties and flats saw a very slight fall in the average price.

The yearly percentage change also shows a small 1.6% increase for the average property price, with all properties except flats reflecting this rise. The biggest rise is seen for semi-detached properties, which increased by 2.9%.

The monthly percentage change also shows a continuation of the status quo, with no change overall. Looking at the individual property types, detached and semi-detached properties show a slight 0.1% increase, while terraced properties and flats show a drop of 0.1%.

View the full Pembrokeshire report.

CARMARTHENSHIRE

The average price of properties in Carmarthenshire fell slightly in December 2024 – down to £197,925 (from £199,330 in November 2024). All property types experienced this drop – the average price of detached properties fell to £282,242 (down from £283,933); semi-detached properties fell to £181,882 (down from £183,181); terraced properties fell to £149,219 (down from £150,451) and flats fell to £97,139 (down from £97,957).

However, when we look at the annual percentage change, properties in Carmarthenshire have increased in price – up 5.7% overall in December 2024, with the biggest annual increases being seen across terraced houses and semi-detached properties, which are up 6.6% and 6.4% respectively.

The monthly percentage change is down slightly (-0.7%) though for December 2024, with the biggest monthly drops seen for terraced houses and flats – both are down 0.8% this month.

View the full Carmarthenshire report.

CURRENT UK HOUSE PRICE INDEX

* As of December 2024, the average house price in the UK is £268,087, and the index stands at 102.7.Property prices have fallen by 0.1% compared to the previous month, and risen by 4.6% compared to the previous year.

*Details provided by the Land Registry. For more information on the House Price Index please CLICK HERE

Please note that the stats provided by the UK House Price Index are live and constantly evolving.