All About the Current Real Estate Market in South Wales

Across the world, real estate markets are growing at an unprecedented rate, with an average CAGR of 3.2% globally.

The UK is no exception, and Wales leads the way when it comes to the housing boom in this country. In Wales, prices are soaring in every county and demand is high across the board.

Keep reading for all the ins and outs of the real estate market in South Wales right now.

High Demand and High Prices

This year, the South Wales real estate market got off to a flying start, with average prices well above average. Thanks to the land Transaction Tax (LTT) holiday, price growth and activity soared to above-average levels.

During 2020, sales grew to over 36% above 2019 levels at the beginning of the year, and continued to climb, although this has slowed now that LTT relief is no more.

Yet, prices remain well below the national average at £199,113, compared to £320,757 in England, which has the highest prices of all UK nations.

Thanks to this, you’ll notice you get a lot more bang for your buck when shopping for South Wales houses.

Provisional data from the Office of National Statistics reveal that volume transactions in Wales increased by 85.2% between April 2020 and April 2021. This means there’s a substantial shortage developing when it comes to supply vs demand.

Wales’s Help to Buy program, now extended to 2022, provides shared equity loans to those buying new homes, but with a cap of £250,000. It currently only supports 19% of new home sales in the country.

Despite an increase in affordable delivery of new homes up until March 2020, this growth is still 16% below the current need. This supply will likely fall even shorter during 2021, due to a global shortage of building materials and disruptions due to COVID-19.

Buyers From Every Part of the Country

South Wales is a welcoming and affordable place to live, with plenty of picturesque countrysides to enjoy. These aspects make it a top choice for home buyers from other parts of the UK, as well as investment buyers from around the world.

The area also boasts several wonderful landmarks that make it a top tourist destination, like:

• The capital city, Cardiff
• Brecon Beacons National Park
• Gorgeous waterfalls
• Dan yr Ogof
• The National Showcaves Center for Wales
• Glamorgan’s Heritage Coast
• Carreg Cennen Castle
• The Vale of Neath

As such, it’s a great attraction for travelers too. So, if you’re looking for a place to spend your weekends or school breaks, or want to buy a short-term rental home, South Wales is a good choice.

Most people in Wales rent their accommodation, with an average rent of £650 per month. In the last year, rental rates have escalated by 3.8%, yet they’ve remained below the UK average.

Thanks to high demand and affordable prices, investment property owners can look forward to investor yields of over 5%.

A Seller’s Real Estate Market

These two factors are hotting up the prices for every kind of home. So, if you’re considering selling, now’s the time.

Even if your home needs work, and you’re in a hurry for cash, you can get the highest prices ever from cash buyers in South Wales.

These companies, that claim ‘we buy any house‘ have buyers lined up for fixer-upper South Wales homes for sale. These companies can afford to pay you out for your home within seven days, giving you fast access to the cash you need.

Home Buyer Trends

There are three main things people are looking for when buying property nowadays. These are:

Country Retreats

Due to the restrictions imposed by lockdowns, people across the world have realized that you can only stare at city landscapes out of your window for so long.

So, as work-from-home initiatives continue, more people are taking stock of their surrounding environment and opting for wide-open spaces in place of the city bustle.

Country towns don’t have the crowds you’ll find in major cities and offer healthy atmospheres filled with fresh, clean air.

Staying Close to Home

The coronavirus pandemic brought with it numerous adjustments regarding travel restrictions. This created several significant risks regarding long-distance getaways and created a trend toward staying close to home when traveling.

Staycations are still a top leisure activity, and buyers are searching for property in South Wales coastal areas that offer excellent leisure activities, like Pembrokeshire, and Ceredigion.

Extra Space

Keeping children cooped up indoors is fraught with frustrations for everyone. So, the home-schooling phenomenon created a new sense of urgency when it comes to buying a house.

Now, gardens and courtyards are a top priority for homeowners searching for a new abode, and the countryside of South Wales offers plenty of those. For those searching in urban areas, a balcony will do, but everyone wants a space to get away from indoor confinement.

After gardens, new buyers want extra rooms to use as an office or gym, so they can maximize the convenience of time spent at home.

Bearing this in mind, it’s easy to see why semi-detached homes show the highest demand, with prices rising by 18.4% in the first half of 2021. Flats and maisonettes lag, although their prices still increased by 10.9% during the same period.

Fascinating Real Estate Facts

Thanks to all the above factors, all of Wales is experiencing the highest price growth in the UK, yet remains more affordable than anywhere else.

What’s more, while South Wales real estate agents expected these trends to end after 2020, they’ve continued unabated throughout 2021.

The real estate market is an ever-changing world of interesting trends and statistics. Bookmark our site and check back regularly for updates.