The Welsh county where house prices have plummeted

Two-bed terrace for sale in Merthyr Tydfil for offers over £130,000 with purplebricks
-Credit: (Image: Purplebricks, covering Cardiff)


The latest house price data from the Office of National Statistics (ONS) reveals that there has been an overall increase in the average house price in Wales of 1.3% during the 12 months to March 2023, although this was slower than the average UK house price annual inflation of 1.8% during the same period.

The March year-on-year 2024 figure for Wales was up from a decrease of 0.7% in the 12 months to February 2024, although the month-on-month figure between February and March 2024 shows only a modest 0.9% increase.

Breaking the data down to county level, 11 of the 22 local authority areas showed an increase in average house prices in the 12 months to March 2024, ranging from 4% down to an arguably insignificant 0.2%. However, in one Welsh county, the prices have fallen. For more property stories sent to your inbox twice a week sign up to the property newsletter here.

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The Isle of Anglesey and Ceredigion both showed the highest annual percentage change. In Ceredigion the average house price is estimated to have risen by 4.0% to £244,000 in the 12 months to March 2024 according to the ONS. The Isle of Anglesey experienced a 4.0% rise to an average of £243,158 during the same period.

The smallest level of increase in an area's average house price was Vale of Glamorgan with only a 0.2% rise to £290,412 recorded and Monmouthshire remains the most expensive county to buy a home with an average price of £340,158.

Five bed, five bath detached house in Heolgerrig for sale for offers in the region of £799,950 with Ramsay & White estate agents, Aberdare
Five bed, five bath detached house in Heolgerrig for sale for offers in the region of £799,950 with Ramsay & White estate agents, Aberdare -Credit:Ramsay & White estate agents, Aberdare

But it's the decrease, rather than any increase, in average price that might be more intriguing to many people. Of the 10 counties that experienced a decrease in the 12 months to March 2024, one stands out as having a double figure decline - the only area in Wales to experience a fall over over 10%.

Where the Welsh average rose by 1.3% over the same timescale the average house price in the county of Merthyr Tydfil was £131,000 in March 2024, down by a noticeable 13.7% from March 2023.

According to more detailed data from the ONS In the year to March 2024, the biggest decline by property type was for flats which decreased by 18.3%, while the average price for terraced properties in Merthyr Tydfil fell by 13.5%.

Further analysis reveals that the average price paid by first-time buyers was £116,000 in March 2024, which is 13.6% lower than the average of £135,000 in March 2023. In addition, for homes bought with a mortgage, the average house price was £134,000 in March 2024 - that's 13.7% lower than the average of £156,000 in March 2023.

Detached four-bed house near Cwmtaf for sale for £500,000 with purplebricks
Detached four-bed house near Cwmtaf for sale for £500,000 with purplebricks -Credit:Purplebricks, covering Cardiff

However, figures released by Principality Building Society in January 2024 provided by Acadata and using Land Registry data, the 12 month drop in the county of Merthyr was at 21.2%, meaning that in the months January - March 2024 the decline in this county has been slowing. Find out if the average house price has risen or fallen in your area here.

Rhian Derrick, partner at Welsh conveyancing firm Devonalds, commented: "As house prices decrease across some areas within Wales, homeowners may face challenges in maintaining the value of their properties, potentially impacting their equity and financial plans. However, for prospective buyers, this presents an opportunity to enter the market in this area at more affordable rates, potentially realising their dream of homeownership sooner than expected."

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