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House Prices in Wales Continued to Rise in June

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House prices in Wales continued to rise in June, the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey suggests.

A net balance of +18 percent of Welsh chartered surveyors responding to the latest survey said that prices increased, but this has eased back from +27% in May, and +38% in January.

This softening in the market since the beginning of the year is reflected elsewhere in the survey too. Expectations for both prices and sales at the half-way point of 2018, whilst still positive, are considerably weaker than they were in January.

Welsh surveyors also continue to point to a reduction in the number of properties becoming available for sale, with the net balance for new instructions to sell in negative territory for the fourth month in a row.

It is a slightly more positive picture with regard to newly agreed sales and new buyer enquires in June, with surveyors indicating that these saw marginal improvements after a subdued picture in May.

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

“First time Buyers remain prevalent in the market in terms of viewings and offers being made. A shortage of two-bed starter homes and three-bed semis remains an issue, and asking prices, or near to them, are being paid in this segment. In the middle to upper price ranges though, we have seen enquiries and viewings decline in recent months, and it would appear that this is in part at least a result of the new Land Transaction Tax, as many people made their purchases before the change on April 1st to avoid a higher rate of tax.”

The main findings of the latest survey were as follows:

The headline price balance for Wales was +18% in the latest survey, meaning that 18% more surveyors said that prices rose in the past three months than those who said they fell.

The price expectations balance, at +16%, suggests that surveyors expect prices to edge upwards again in the three months ahead. The sales expectations balance was at +11%.

The new instructions to sell balance was at -6%, suggesting that the number of new properties coming onto the market was marginally lower in June.

Meanwhile, the newly agreed sales balance was at +12% suggesting that the number of newly agree sales picked up. New buyer enquiries increased, according to a net balance of +16% of respondents in Wales.