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Welsh House Prices Rise Firmly with Properties Selling

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RICS Residential Market Survey, Wales March 2017

  • House sales in Wales rise firmly in the March RICS survey
  • Prices net balance at highest since mid-2014
  • Price expectations at four-month high

Welsh house prices are rising firmly and properties are selling, bucking the UK trend, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.

Newly agreed sales in the UK were stagnant in March, but in Wales they rose at the fastest rate in four months, the balance of respondents say.

In terms of prices, the survey’s key indicator was at its highest level for Wales since mid-2014 last month. Welsh surveyors also expect prices and sales to continue rising into the three months ahead.

On the supply side, the latest survey suggests that longstanding challenges remain. Whilst new instructions to sell rose in March, according to the balance of Welsh respondents, they did so at a relatively weak rate, and off the back of a prolonged period of no growth.

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

“We are seeing rising numbers of people registering to buy, but in March there were fewer properties than I would expect coming onto the market for that time of year. In our experience, sales activity is good, particularly in the £250,000 – £350,000 price range, due to demand exceeding supply. This is putting upward pressure on prices. However, in the two-week run up to Easter, we have seen something of a late surge of new instructions coming onto the market. We will wait to see if it is perhaps a turning point in terms of supply finally now catching up.”

David James FRICS of James Dean in Brecon says:

“March was very busy with sales, but new instructions are down”.

John Caines, of Payton Jewell Caines, says:

“The supply side continues to dominate at present with little sign that more property will come to the market in the short term”.

The main findings of the survey were as follows:

The headline price balance for Wales was +42% in the latest survey, meaning that 42% more surveyors said that prices rose in the past three months than those who said they fell.

Newly agreed sales rose in March according to a net balance of 30% of Welsh respondents.

The price expectations balance at +24%, remains in positive territory. Meanwhile, sales expectations data (+18%) remains relatively healthy.

The new instructions to sell balance was up slightly +10%.