The property market in Wales was stable during the Coronavirus crisis

Despite the pandemic, home prices did not drop at all.

House prices in Wales were stable in the second quarter of 2020 despite the coronavirus pandemic, with the median house price recorded at £191,880 according to figures from the Principality Building Society.

The Principality’s latest House Price Index records the difference in house prices for each of the 22 local authorities in Wales.

The average house price represents an annual increase of 2.2% but a quarterly fall of 0.7%, although the number of purchases is lower than normal due to the blocking measures that were in force. Transactions declined by two-thirds (66%) in the second quarter, in which the housing market temporarily froze.

“The situation is positive.”

Wales kicked off 2020 with an average house price of £193,299 in January. Although the lockdown began in March, most property purchase decisions in that month would have been made before the scope of the pandemic was known according to the index. Therefore, prices would not have been relatively affected by the pandemic until April.

Mike Jones, Acting CEO of the Principality Building Society, said: “We remain cautious about how we interpret the median house price data for the second quarter because sales are down more than 60% compared to the same period in 2019.”

“The temporary increase in the land transaction tax to help first-time buyers, in particular, is likely to stimulate the market in the short term, along with higher levels of activity following the easing of closing restrictions.”

“However, once the UK government’s licensing schemes come to an end in October, there may be an increase in job losses, and this, in turn, will likely harm the confidence of the consumer in general. If this happens, then we would expect to see lower levels of activity in the housing market in the UK, and not just in Wales.”

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