Property Prices, Growth and Demand

Property prices –
Most of the sales in South Wales over the past year were terraced properties which on average sold for £122,599. Semi-detached properties had an average sold price of £157,402 and detached properties averaged at £266,007.
South Wales, with an overall average price of £166,657, was similar in terms of sold prices to nearby West Wales (£163,332) and North Wales (£167,649), but was cheaper than Mid Wales (£205,559). The most expensive area within South Wales was Monmouthshire (£239,246) and the cheapest was Blaenau Gwent (£89,628).
In the past year house prices in South Wales were 3% up on the year before and 8% up on 2007 when they averaged at £154,725.
Demand –
There is a strong demand for rental properties in Wales, and plenty of cheap homes just waiting to be done up – an ideal opportunity for investors. Savills predicts that prices in Cardiff will rise by the biggest margin.
Savills Aug 2016

Another Expert Opinion –
A one-bedroom flat in Wales may not be the most glamourous of property investments but it could deliver the best returns according to a new in-depth buy-to-let report.
Buy-to-let landlords see the best yields in Wales, the North and the Midlands and on one and-two bedroom homes, a survey of more than 50,000 rental properties has revealed.
Those letting in Wales are achieving an average 6.7 per cent yield (rent measured as a percentage of property price), beating the North and Midlands, which are both on 6.5 per cent. This is substantially higher than the average 4.6 per cent yield seen in the red hot part of the nation’s property market, Inner London.
One and two-bedroom properties saw the greatest increase in average monthly rent in April, with a 1.4 per cent and 1.3 per cent month-on-month increase to £679 and £766, respectively.
The figures were delivered by a detailed report into buy-to-let income returns from the UK’s largest lettings agency Countrywide.
It showed that average monthly rent in England, Scotland and Wales has risen for six consecutive months to hit £842 in April.
But rent rises are running below the increase in the cost of living, with an annual increase of just 0.8 per cent standing against Consumer Prices Index inflation of 2.8 per cent.
Nick Dunning, of Countrywide, said: ‘With renting for longer now the norm for many people as they save for a deposit to buy their first home, we are seeing more young families looking to rent cheaper accommodation, hence the increase in demand for smaller rental properties.
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