The Welsh property market is hot in the first quarter of 2025. All-paper transactions are now an astonishing 10,000! Sales are up 20% from the same time last year. This significant expansion is a vigorous opening to the cycle for property in Wales.
Estate agents Sean Lynch from the Harry Harper Agency in Cardiff said it was a very vibrant market. He characterized it as “overwhelming” at every tier. In the industry, he learned that properties need to be priced right and staged well. When they aren’t, curiosity and demand from would-be purchasers remains high. Lynch mentioned the impact of a decreasing base interest rate on buyer sentiment, noting, “With the base rate dropping again, that’s given a bit of a boost to buyers.”
Commenting on the figures, Iain Mansfield, chief financial officer for the Principality, said he was feeling positive. He hailed the initial numbers as representing a “positive start” to the year. Yet he struck a note of caution. In particular, he recognised that utility and energy bills may continue to hit household budgets as the cost of living crisis persists. Mansfield pointed out that some of the interventions made by government may play a role in shaping future market dynamics.
Only 13 local authority areas in Wales experienced an annual decline in their average house price. At the same time, nine regions saw their populations shrink. Specifically, Bridgend, Blaenau Gwent and Caerphilly all saw new all-time high prices between January and March of this year. The market strength seems to be more focused on south Wales as the demand continues to be strong.
In reaction to escalating property prices especially in popular tourism destinations, local governments have used their power to set higher rates of council tax on second homes. At the same time, the Welsh government increased the land transaction tax on additional properties, putting still more thumb on the scale.
As first-time homebuyers, Gemma Redmond and her partner Ellis Price know that doesn’t make it any easier to be active in this extremely competitive market. With the veterinary nurse noting that the couple are nervous about being first-time home buyers, there was a lot on the table. “I’m a bit apprehensive because it’s my first time buying and this is our first joint mortgage,” she said. The pair have put their flat in Cardiff on the market already. Even getting a little bit ahead—like losing a house to another buyer—was a crushing blow. Price remarked on their experience, stating that being outbid was “sadly the lay of the land at the moment.”
