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Wales’ House Prices Expected to Rise Over Next Three Months

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RICS Residential Market Survey, Wales June 2017

  • Prices rise in June for fifth consecutive month
  • Welsh surveyors more optimistic than UK average
  • Sales activity expected to pick up in three months ahead

Welsh house prices ended the first half of the year in growth mode and are set to rise in the three months ahead, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.

More surveyors reported rising prices in the June survey in Wales than in almost any other UK region.

Welsh surveyors are also amongst the UK’s most optimistic when it comes to the outlook for both prices and sales during the next quarter.

This is despite an easing back in activity during June, with fewer Welsh surveyors reporting that new enquiries and newly agreed sales were up than in the May survey.

On the supply side, instructions to sell increased for the second month in a row, according to the balance of Welsh respondents, but only marginally so (a net balance of +9%).

RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, says:

“Wales appears to be bucking the wider UK trend, which is of a slowing market. Clearly within the UK, there are markets within markets, and indeed the same can be said of Wales, where there is also regional variation. But in our experience, confidence amongst buyers is strong, particularly in the first-time buyer market and in the market for three-bed semis, and overall surveyors expect prices to rise.”

Andrew Morgan FRICS of Morgan & Davies in Lampeter said:

“It has been a continually busy period following a spring surge of new business”.

David Owen of Clare Evans & Co in Rhayader, said:

“Sales in Mid Wales have been buoyant but buyers from buyers from the south east appear unable to sell their own properties quickly”.

The main findings of the survey were as follows:

The headline price balance for Wales was +38% in the latest survey, meaning that 38% more surveyors said that prices rose in the past three months than those who said they fell.

The price expectations balance, at +22%, remains in positive territory, as does the sales expectations balance at +26%. The new instructions to sell balance was at +9%, suggesting that there was a relatively marginal increase in the number of new properties coming onto the market.

Meanwhile, new buyer enquiries increased according to a net balance of +4% of Welsh surveyors, and the newly agreed sales balance eased back to -5%.