House prices in Wales rose at their fastest rate in more than six months and more buyers and sellers were active in the market during January, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 10% of respondents in Wales reported that prices rose in the latest report. This is the highest this balance has been since March 2024, and up from the net balance of 8% that was seen in December 2024.
New buyer enquiries rose for the fourth consecutive month, with a net balance of 11% of Welsh respondents reported an increase in demand, up from 9% in the survey prior.
Looking at supply, a net balance of 17% of respondents in Wales noted a rise in new instructions to sell.
With both demand and supply increasing, it is unsurprising that surveyors in Wales reported a rise in newly agreed sales. A net balance of 15% of noted a rise in sales through January, up from 10% seen in December.
And looking forward surveyors remain positive on the sales outlook, with a net balance of 14% of respondents in Wales expecting sales to rise over the next three months, the third consecutive month that this balance has been in positive territory.
Respondents though are less optimistic about the outlook for prices. Looking forward, a net balance of -20% of Welsh respondents anticipate that prices will fall over the next three months, down from the net balance of -12% seen in the survey previous.
In the lettings market, a net balance of 20% of respondents in Wales report a rise in tenant demand, whilst landlord instructions are reported to have fallen flat. Consequentially, a net balance of 20% of Welsh surveyors anticipate that rents will rise over the next three months.
Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis Ltd. in Cardiff said:
“We are seeing increased activity in instructions and viewings, including in the higher price ranges. Sales at the upper levels are being agreed where vendors are taking a realistic view on price. A higher number of first-time buyers are registering too, as stock being sold off by landlords is becoming available.”
Discussing the lettings market, Paul Lucas, FRICS of R.K.Lucas & Son in Haverfordwest commented:
“Demand for letting properties remains high and far outweighs supply. This has been exacerbated by private landlords leaving the market due to new lettings legislation. We anticipate that this will continue until private landlords are incentivised to re-enter the market.”
Commenting on the UK picture, RICS Head of Market Analytics, Tarrant Parsons, said:
“The latest survey feedback indicates that growth in buyer demand lost a bit of momentum through the early part of the year, with this flatter picture likely linked to the turbulence seen across money markets in the first half of January.
“Nevertheless, moving forward, respondents continue to envisage a slightly positive near-term outlook for sales activity. This should be further supported by the unwinding of some of the pressures around mortgage interest rates over the past couple of weeks.”
