House prices in Swansea start to rise as market recovers
01-02-2015
By South Wales Evening Post
Signs along a Swansea street suggest movement in the property market.
THE new year is heralding good news for house prices in Swansea — they have risen 1.4 per cent, new data shows.
Figures released by the Land Registry House Price Index suggest average county prices increased to £107,046 last month.
However, while annual figures continue to show growth, there has been a slow down month-on-month.
The report reveals a fall in prices of 0.6 per cent from October.
Nigel Jones, director of Swansea- based estate agency John Francis, said the region had experienced more than six years of little to no price growth, but added there was potential.
He added first-time buyer activity had increased.
"While it may only be a matter of time until the current plateau begins to rise, South West Wales has continued to avoid the much-publicised volatility in residential property prices seen in London and the Home Counties this year," he said.
"We have now had almost seven years of nil growth, with values currently at similar levels to those in 2005. The potential of future capital growth will be a great comfort to occupier-buyers and first-time buyers in particular. Even with the continued success of the Help to Buy scheme in Wales, first-time buyers still struggle in the face of significant deposit requirements and now the increased stringency of the mortgage application process.
"The Swansea region is one area that has seen an increase in first-time buyer activity, although this group of buyers struggle to compete with investors over a limited supply. As fewer properties requiring work have come on to the market, investors have turned to newer, better quality homes."
But new figures released by Nationwide shows South West Wales has experienced the biggest annual price rise over the past 10 years out of all regions in the country.
Average prices for October to December this year are 11 per cent higher than that period in 2004. Cardiff saw a 9 per cent rise and North Wales 3 per cent.
While price values for the same three months this year are 5 per cent higher compared to 12 months ago, figures for July to September 2014 show an 11 per cent rise on that period the year before.
Wales also experienced the least annual price growth across all UK regions for the October to December period.
Prices have risen by 1.4 per cent compared to the same three months last year. This compares to a five per cent year-on-year increase in the three months prior.
Robert Gardner, Nationwide's chief economist, said: "All regions (in the UK) except the north of England saw a slowing in annual price growth in the final quarter of 2014, although all saw price growth over the year overall. Wales was the weakest performing region in 2014 and saw annual price growth slow from 5 per cent in the third quarter to 1.4 per cent in the fourth.
"If the economic backdrop continues to improve as we and most forecasters expect, activity in the housing market is likely to regain momentum in the months ahead.
"Supply side developments will be crucial in determining the trajectory for prices.
"Recent changes to stamp duty may also have a modest positive effect on demand."
Home-buyers in Wales are to gain from the new stamp duty reform, which came into effect earlier this month. The tax payable on an average property, which is £165,699 according to Nationwide, will be cut by around half to £814.
A total of 98 per cent of buyers who have to pay the tax are expected to pay less under the new system.
Around 45 per cent of deals in Wales are exempt from the tax as they have a purchase price of £125,000 or below.
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