Mick McGuire, director of business development for Principality responded to the Land Registry’s latest residential property prices report and said: “The Land Registry figures are very accurate but people need to take into consideration that there is a lag on the information provided and it does not reflect the market as it stands. There is always a delay in recording house prices at the Land Registry following completion of a sale and therefore these figures reflect the market at the back end of last year.
“Recent figures from building societies and estate agencies have indicated that house prices growth has slowed across the UK at an even greater rate than the 10% growth quoted by the Land Registry for the first quarter of 2005. However, these latest figures clearly highlight the hot and cold spots and the key regional differences in Wales with areas such as the Vale of Glamorgan, which was a hotspot two years ago, now slowing down to under a one percent price rise. In stark contrast, the 44 per cent increase seen by Merthyr Tydfil is more similar to what was witnessed in Swansea and Bangor this time last year and is unheard of in those areas now.
“Perhaps, the most telling statistic is that the volume of sales has decreased by 34 per cent compared to the first quarter in 2004 – from 243,914 in 2004 to 159,116 in 2005. Supply and demand plays a big part in determining house prices, and with more houses available for sale and less of these houses being bought it is inevitable that buyers have greater power to negotiate the price.
“The housing market in Wales is now stabilising and although there is still a problem with affordability we are starting to seeing a renewed confidence in first time buyers as prices become more realistic and as interest rates stay put at 4.75% for the ninth month running.”
