Confidence within the state of the economic system is steadily bettering, which is serving to steadily increase home costs, Principality Constructing Society discovered.
The society discovered that the common value of a house in Wales was £238,098 within the second quarter of 2025, up 0.7% year-on-year and simply 4.6% beneath its peak of £249,000 in 2022.
Transactions reached over 10,000 in Q2 (up 13% on final yr), suggesting rising purchaser confidence regardless of persistent cost-of-living challenges and elevated charges.
The price of renting the common residence has elevated by 8.5% within the 12 months to Could, boosting buy-to-let returns.
Iain Mansfield, chief monetary officer at Principality Constructing Society, mentioned: “The housing market in Wales continued to stabilise within the second quarter of 2025, with costs holding broadly flat in comparison with the beginning of the yr.
“Encouragingly, the regular improve in transaction volumes alerts growing confidence amongst patrons.
“Whereas market circumstances stay difficult, a downward pattern in mortgage charges helps to create a extra beneficial atmosphere for patrons. This shift is contributing to a gradual uplift in client confidence as we transfer into the second half of 2025.”
The Financial institution of England base price helps to drive exercise, as the common 2-year mounted price has dropped from roughly 5.56% to round 4.68% in 2025.
Torfaen recorded the best quarterly value change of any native authority at 14%, pushed by periodic high-value gross sales and restricted housing provide. Carmarthen additionally reported a rise of 6.3%, whereas Flintshire noticed a 3.3% quarterly rise.
Different areas, together with Gwynedd, noticed costs fall within the second quarter, dropping 7.3% from the primary quarter of 2025. A drop probably influenced by coverage shifts such because the Welsh Authorities’s changes to second residence taxation and the impression of latest planning laws.
Mansfield added: “Housing provide stays a key problem in Wales and throughout the nation, significantly reasonably priced and social housing.
“Coverage adjustments together with the Welsh authorities’s dedication to growing the availability of reasonably priced properties and plans to implement the suggestions of its Reasonably priced Dwelling Taskforce intention to deal with ongoing provide challenges and ease pressures on the housing market.”
