House prices in Wales fall year on year for the first time in 10 years

Credit: PA Images

House prices in Wales have fallen for the first time in a decade, according to the Principality Building Society.

The average price of a home in Wales has fallen to £239,378, down almost £10,000 from its peak at the end of 2022.

Prices fell in all but four Welsh Local Authorities.

Denbighshire saw the highest drop at 15.9%.

The biggest rise in house prices was in the Vale of Glamorgan, growing by 11.8%.

At £384,967, the Vale was also the local authority with the highest average house price in Wales.

The cheapest average house price was Blaenau Gwent at £133,463.

Conwy, Monmouthshire, and Merthyr Tydfil also saw an increase on last year.

In Cardiff, there was a small drop of 1.8%.

Shaun Middleton, Head of Distribution at the Principality Building Society said: "Economic pressures over recent months, paired with higher interest rates than we’ve become used to, means that affordability remains a problem for many buyers.

"This has put pressure on the housing market, which remains subdued, when compared to recent years when record average prices across Wales were seen.

He added that despite the Bank of England’s decision to leave base rate unchanged at 5.25% in September, "the overall benefit for consumer confidence may be limited by a growing awareness that interest rates look set to remain higher for longer."

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To know...