Property Prices in Wales

Property prices in Wales are going to be subdued throughout this year. Market for residential property has largely been struggling this year. Sales have been falling with the most recent statistics showing that sales have fallen by 17.5%, as the prices per unit tumbled down. In the month of April the prices for houses went down on average by 0.3% compared to the month of March. However in the upper tier of the properties’ market some level of resilience is being seen. The upper tier in the market has created some disparity in the annual house prices.

The Welsh housing market is different from other markets in Europe. At the forefront places in Wales with the highest prices including Monmouthshire and the Vale of Glamorgan, have had the largest increases in pricing per unit while areas with the lowest prices had the biggest fall in prices. This is a unique phenomenal only found in Wales. The constriction of the mortgages market for first time home buyers has helped to dampen the housing market. The adverse whether conditions have also impacted negatively on the market. Property buyers were not enthusiastic in viewing new houses as the heavy rainfall experienced in April kept people in their homes.

Competition in the properties market was dampened by the more than normal rainfall in April. The reduced number of first time home buyers participating in the market is bound to have a long term effect on the market. Securing mortgages for first time home buyers is still hard which has deflated the prices in the market. The month on month prices will remain deflated into the foreseeable future due to the hardships being experienced by first timers. Lenders are also suffering as they face more pressure on their lending abilities as a result of the financial crisis in the world.

Many first time home buyers in Wales are finding it hard to acquire home ownership. However the Bank of England seems like is going to offer some relief. The new funding for lending if successful would enable first timers to get affordable rates on their mortgages from mortgage lenders. Wealthier buyers and rich retirees have been instrumental in keeping the properties market going. The prices are higher compared to the same time last year.

The housing market will remain subdued this year due to the economic slow down and the difficulties of securing a mortgage. The Queen’s Jubilee celebrations and the Olympics will also impact negatively on the market. Activity in the market will be similar to those seen in 2006 and 2007.