Wales House Prices Rise Above UK Average
House prices in Wales increased at a faster rate than the UK average in the year leading up to December 2025, with some regions experiencing rises of up to 7%.
Data released by the Office for National Statistics (ONS) indicates that average property prices in Wales grew by 5% over the year, more than double the UK-wide increase of 2.4%.
Blaenau Gwent and Anglesey were among the areas with the most significant price increases, while Ceredigion and Merthyr Tydfil saw slight declines in average house prices.
Experts interpret the data as evidence that more affordable locations continue to attract buyers, despite challenges such as higher mortgage rates and economic uncertainty impacting demand in other areas.
The average house price in Wales was £215,000 in December 2025, reflecting a 5.0% (£10,000) increase compared to the previous year.
Within Welsh local authorities, Blaenau Gwent and Anglesey recorded some of the strongest annual growth, with house prices rising by 7% and 7.2% respectively.
Conversely, Ceredigion experienced a 4.1% decrease in average house prices, and Merthyr Tydfil saw a 4.4% decline.
Joseph Tibbs, an estate agent at Asset Estates in Abertillery, Blaenau Gwent, noted a slight reduction in the number of buyers compared to the previous year, although sales continue to be agreed.
"The overall demand is ever so slightly down, not quite as many looking at the moment since last year," he said.
Joseph also observed fewer inquiries than in previous years, when popular properties would attract multiple viewings rapidly.
"It used to be that a property would go up and the phone wouldn't stop ringing. You'd get anything from 10 to 15 viewings in the first two or three weeks. Now it seems to have really quietened down.
"It's becoming more quality over quantity."
He added that many buyers are relocating from more expensive areas.
"We get a lot of people from Cardiff, Newport and even Bristol, especially since working from home became more popular. They come up this way for the house prices."
Challenges for First-Time Buyers
For some first-time buyers, the main obstacle is no longer saving for a deposit but managing the monthly mortgage repayments.
Sam Cartwright, 25, from Wrexham, has saved £15,000 and has been looking at local properties priced around £150,000. However, he finds the ongoing costs of homeownership make buying alone feel unrealistic.
"You're constantly being told 10% deposit. I've got a 10% deposit, but it's the additional costs to the mortgage rates," he explained.
"You're talking between £700 and £1,000 per month for a mortgage, and then you've got your council tax, your heating, your electric, your water... and that's before you even get to food and fuel."
"I would be left with maybe £50 a month after all the housing costs were done. It's unattainable in the sense that I have the deposit money, I just wouldn't be able to afford the upkeep of the house on my own.
"It just begins to snowball and then it makes me think, I wouldn't really be living if I did get a house, you know?"
Among his peers, Sam noted that buying alone is uncommon.
"I'm 25. Not many of the people around me have got a house, or even anywhere near."
"Something's got to give. Either the wages have got to rise or the housing prices have got to drop, there can't be both."
Relative Affordability Supports Price Growth
Dan Hill, a research analyst at Savills, attributed Wales' house price growth to its relative affordability compared to other parts of the UK.
"Wales outperforming the UK average is down to its relative affordability," he said.
"With lower house prices relative to local earnings, buyers in Wales are less constrained than those in more expensive parts of England, which is supporting price growth."
However, some coastal areas have diverged from the overall Welsh trend.
Ceredigion and Pembrokeshire both recorded annual price declines exceeding 3%, following substantial increases during the pandemic period.
"Coastal holiday hotspots within Wales have been notable outliers in the last year," Dan explained, noting that prices in these areas rose by more than 35% between 2020 and 2022.
He also cited recent changes to council tax regulations in Wales, which permit councils to charge up to 300% of the standard rate on second homes, as a factor reducing demand from this buyer segment.
"This has substantially limited demand from this group and localised price falls are the result."
Looking ahead, Dan expressed optimism about continued price increases in Wales.
"House prices in Wales should continue to outperform the UK average. This will be supported by a gradually improving economy and the likelihood of further interest rate cuts to come."
