Wales is still the region with the highest average house price increase across the UK, according to the house price index (HPI) released by the Office of National Statistics (ONS) covering the year-on-year comparison from July 2021 to July 2022.
The data indicates during this 12 month timescale the average house price in Wales has increased by 17.6% to another new record breaking high of £219,951, a 2.8% increase since the June 2022 ONS data was released.
The volume of transactions for the period July 2021 to July 2022 were also higher in our nation, with Wales recording an increase of 48.3% compared to the overall UK figure of 34.5% for the same period.
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Wales' house prices were also growing faster during this 12 month period than the UK annual rate of 15.5% while reporting that this UK percentage figure has seen the average UK house price increase to £292,000 - a £39,000 jump since July 2021.
The ONS states that the UK's 15.5% increase is the highest annual inflation rate the UK as a whole has seen since May 2003 'mainly because of a base effect from the falls in UK prices seen this time last year, as a result of changes in the stamp duty and land transaction tax holiday'.
Iain McKenzie, CEO of The Guild of Property Professionals, says: "The cost of living is surging across almost every aspect of our lives, but these unprecedented rises in house prices continue to defy expectations. The latest figures showing the highest annual growth rate in almost 20 years will be particularly discouraging for first-time buyers, with many already struggling to save for a large enough deposit.
"To put it into perspective, the average house in the UK will now set you back almost £40,000 more than it did a year ago. That's £40,000 extra that buyers will need for a mortgage to get them on the property ladder.
"The coming months will be crucial to see just how this trend plays out. This time last year, the effects of the stamp duty and land tax transaction holiday winding down brought a slight cooling effect on the market, which could explain why we have seen such a big jump in annual price inflation.
"While it's easy to assume that an adjustment to the market is on the horizon, history shows us that significant falls rarely happen year-on-year. The demand for good quality housing remains robust, we just need to see the cost of living come down to ensure that confidence in buying stays buoyant."
The next UK region to see the highest year-on-year growth from July 2021 to July 2022 after Wales is England, with a 16.4% increase to an average asking price of £312,000.
The Scottish property market appears to have slowed somewhat, with the nation going from a 16.2% growth figure in April 2022 that recorded an average asking price of £188,000, to 9.9% growth in the 12 months to July 2022, producing a new average price of £193,000.
Northern Ireland is stated to have experienced the slowest growth from July 2021 to July 2022, with the ONS recording a 9.6% increase to an average house price of £169,000.
The trend in Wales continues for all 22 counties to experience an increase in the annual average house prices, with some of the cheaper areas continuing to dominate within the top five highest increase areas - the property hot spots.
As with the previous month's ONS figures, Monmouthshire continues to be the most expensive county to call home, with house prices here increasing by 15.4% between July 2021 and July 2022 to create an average price of £350,853.
Blaenau Gwent also continues to be the cheapest county to buy a home, with the average price £132,156. But as the latest ONS figures illustrate, this is driving the county to see the highest percentage average house price increase in Wales, sending it to the top of the list of property hot spots with an annual increase of 20%.
The county of Merthyr Tydfil is not far behind its valleys neighbour, with the ONS data stating that the area has seen a 19.8% average house price increase over the last 12 months, settling on an average cost of a home here at £152,500.
Cardiff has sunk to the bottom of the list of 22 counties regarding average annual house price increases, with the latest data stating that the capital saw a 8.3% increase during the 12 months being analysed, the only county in single figures. This has increased the average house price from £236,383 to £256,116.
Of all property types within Wales for the 12 month period in question, terraced houses showed the largest annual growth, rising by 18.4% in the year to July 2022 to an average asking price of £173,000 from its 2021 level of £145,908.
Flats and maisonettes showed the lowest annual growth, rising by 10.2% in the year to July 2022, moving from to an average price of £123,794 in July 2021 to £136,472 in July 2022.
Detached houses also saw a noticeable growth, almost as high as for terraced homes, at 18.2% which has created an average price of £335,993 up from £284,282 a year earlier. Semi-detached homes saw a 17.9% increase in the Wales' average for this type of home, going up from £180,973 in July 2021 to £213,446 in July 2022.
The ONS states when considering its latest findings that, as with other indicators in the housing market which typically fluctuate from month to month, it is important not to put too much weight on one month's set of house price data.
The impact of the Covid-19 pandemic is also noted within the latest figures, with the ONS stating: "As the coronavirus (COVID-19) pandemic impacted on the supply of housing transactions for a period of time, we may see larger revisions to the published UK House Price Index (HPI) estimates than usual, as HMLR continue to process the backlog.
"The total number of processed transactions feeding into this month's release (including those from previous months, which are incorporated in line with our revisions policy) has increased compared with the numbers seen throughout the coronavirus pandemic period.
"While this indicates an improvement in the quality of the UK HPI estimates going forward, it may also result in revisions to previous months that are higher than usual, as more transactions are now available in our calculations."
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