House prices in Wales are predicted to increase by nearly 20% in the next five years, according to new research by real estate firm.
The firm has predicted that the North-South price divide in the UK will ‘turn on its head’ due to prices rising faster in Northern England and Wales compared to those across London.
According to the report, across Britain, house prices are expected to increase by 14.8% from 2019 to 2023. In cash terms, this increase could potentially add around £32,000 to the average house price by the end of 2023 – making it £248,086. Average prices in Wales are expected to increase by 19.3% in the same period.
The report predicts significant regional variations, with only single-digit house price growth expected across London over the five-year period while many other areas see double-digit increases.
19.3% Predicted increase in average house prices in Wales over next 5 years
20.5% Predicted increase in average house prices in Yorkshire and Humberside over next 5 years
4.5% Predicted increase in average house prices in London over next 5 years
Brexit angst is a major factor for market sentiment right now, particularly in London, but it’s the legacy of the global financial crisis – mortgage regulation in particular – combined with gradually rising interest rates that will really shape the market over the longer term.
That legacy will limit house price growth, but it should also protect the market from a correction.
Lucian Cook, Savills head of residential research
The report says Wales is a “hugely diverse” market and there may be increased demand for Welsh property coming from the Bristol direction following the abolition of Severn crossings tolls.
In September, house prices in Wales reached an all-time peak, with the average property across the country costing £184,722.
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