With mortgage rates at the lowest levels for 15 months and recent press headlines highlighting a rise in prices, there’s a definite renewed confidence in the market. Read on to discover the latest trends being reported by Rightmove and Zoopla, and we give our insights on the housing market in West Wales.

In Brief

Nationally the market has seen – 

• Average new seller asking prices rise by 0.8% (+£2,974) this month to £370,759¹.
• September usually sees a monthly rise in prices, but this year’s increase is double the long-term average, with prices supported by increased activity levels¹.
• The traditionally busier autumn market appears to have started early¹.
• Home owners are more confident to come to market, with the number of new sellers up by 14% on this time last year¹.
• The market remains cautious – It’s currently taking an average of 60 days for a seller to find a buyer, three days longer than in the more subdued market at this time last year¹.
• There are now the lowest mortgage rates for 15 months, which is boosting sales market activity².
• Buyer demand and sales agreed up 25% since 2023².
• Buyers remain price-sensitive, keeping price rises in check².
• Average UK house price rises almost 1% in a year – although in affordable areas, house prices rise 2.5%².
• The outlook is for modest price growth and steady growth in sales².

In terms of the Welsh property market –

• The average house price in Wales is now £265, 218, up 0.9% over the last month, and up 2% year on year¹.
• The average number of days for a Welsh property to be on the market before a sale is agreed has dropped again to 66¹.

¹Source – Rightmove

²Source – Zoopla

National Overview

The cut in interest rates has brought a boost to the housing market, with buyer demand strong and the number of new sellers up by 14% on the same time last year according to Rightmove. As a result, the market continues to be price sensitive in what is currently a buyers market. 

Rightmove is also reporting a stronger than normal September. It says that while September nearly always sees a rise in prices from August, this year’s increase of 0.8% is double the long-term average rise. This has been driven by a strong recovery in activity this summer – compared to a more subdued market over the same period in 2023.

It says that the busier autumn market has arrived earlier than usual, boosted by the fact that mortgage rates are trending downwards and earnings are now rising faster than both inflation and house price growth. Add to this the increase in choice for buyers and the overall environment is more positive for moving.

But, Rightmove stresses that the market still remains cautious, with a number of uncertainties ahead including a possible second interest rate cut and the autumn budget.

Zoopla reports that buyers are benefitting from the lowest average mortgage rates for 15 months, which is supporting double-digit growth in all key measures of sales market activity. It says that annual house price inflation is positive, but remains below 1%.

It also highlights that the average mortgage rate for a new 5-year 75% LTV loan is 4.3%, compared to 5.5% a year ago, the lowest since May 2023. Competition among lenders is keeping rates attractive for buyers, especially for those with larger amounts of equity.

Zoopla too highlights the increase in homes available for sale – it says they are up 12% on this time last year – and that while market conditions are improving, setting the right price is key to attracting buyers, with the market remaining price-sensitive.

Regional Insight from Cardigan Bay Properties

Whether you’re thinking about buying or selling a property in West Wales, we make the process easier. Every month we bring you the latest industry insights on the property market and how it is evolving, looking at two of the biggest names – Rightmove and Zoopla.  

But while they give an overview of the national property market, we also carefully monitor our local market to ensure you have information about our key regions of Ceredigion, Carmarthenshire and Pembrokeshire. 

September has been a positive month for sales across our region, with the confidence of first-time buyers returning. As a result, chains are able to be built and more sales are going through. 

However, the number of properties on the market in our region is still high – driven in part by more second homes/holiday homes being put up for sale. This is due to the change in how second home owners are now charged council tax – with all local authorities in Wales having the right to increase it by up to 300% for these owners. They can only claim business rates relief if they let the property for over 182 days a year – something unachievable for most. 

As a result, it is still very much a buyers market. With plenty of properties to choose from it remains price sensitive – with buyers able to take their time before making an offer. You’ll see from the analysis below that in terms of the average price for properties, in most areas there has been a slight drop for all property types.

There is also nervousness around how the upcoming budget will affect house selling and buying, with the Government warning of ‘difficult decisions’. The outcome of that announcement and the impact any change has on finances will determine the property market’s performance over the coming months.

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 July 2024.

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

CEREDIGION

July 2024 saw a drop in the overall average house price in Ceredigion – down to £239,281, from June’s figure of £248,353. The fall in prices was seen across all different property types – detached properties fell from £313,845 to £303,001; semi-detached properties from £210,197 to £202,328; terraced properties from £185,116 to £177,902; and flats from £120,546 to £115,701.

In terms of the yearly percentage change, the July figure was down 1.9% – compared to June which was up 2.2%, reflecting an easing of price increases. It is flats that have seen the largest % fall – down 3.8% year on year.

The monthly percentage change also fell by 3.7% overall, with flats down 4%, terraced houses down 3.9%, semi-detached properties down 3.7% and detached houses down 3.5%.

View the full Ceredigion report.

PEMBROKESHIRE

The picture in Pembrokeshire is more positive, with all property types reporting a small level of growth in July 2024. Overall the average property price in July increased to £233,745 – from £233,139 in June 2024. Detached properties increased from £319,350 in June to £320,624 in July; semi-detached from £208,214 to £208,626; terraced properties from £176,684 to £176,968; and flats from £117,651 to £117,703.

In terms of the yearly percentage change, overall this increased by 4.1% in July, with the largest growth being seen for semi-detached properties – this sector saw an increase of 5.8% in July, followed by terraced houses – up 4.4%.

The monthly percentage change shows a small 0.3% increase in prices for July – this comes after an overall drop of 1.2% in June 2024, which was reflected across all property types. This month the small increase is seen across all property types, except flats, which remained static.

View the full Pembrokeshire report.

CARMARTHENSHIRE

July 2024 saw the average house price in Carmarthenshire fall from £198,049 in June to £196,773. This drop is seen across all different property types – detached properties fell from £263,943 to £262,642; semi-detached properties fell from £175,666 to £174,383; terraced houses fell from £144,690 to £143,671; and flats fell from £116,518 to £115,496.

The yearly percentage change also shows a small drop – overall down 0.9% in July 2024, following a 2.1% drop in June. This is reflected across all property types, showing that house prices in the region are easing more slowly. This is supported by the monthly percentage change – overall July 2024 was down 0.6%, following a 1.2% drop in June 2024.

View the full Carmarthenshire report.

CURRENT UK HOUSE PRICE INDEX

* As of July 2024, the average house price in the UK is £289,723, and the index stands at 152.0. Property prices have risen by 0.6% compared to the previous month, and risen by 2.2% 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.