House prices in Ceredigion have risen by 6.2 per cent this year despite the coronavirus pandemic.

The average house price between April and June this year in Ceredigion was £223,328, a 6.5 per cent rise on the same period last year, according to the Principality Building Society’s price index.

The rise is in stark contrast to neighbouring counties Pembrokeshire (£193,629) and Carmarthenshire (£156,126) saw house prices drop in the second quarter by 8.4 per cent and 9.1 per cent respectively.

Gwynedd has also seen a 6.2 per cent drop in house prices, 8.9 per cent down on this time last year, with the average house price in the county now £170,615.

Powys is also down in the quarter by 1.2 per cent but prices are 5.8 per cent up on where they were last year with the average price being £212,841.

The average house price in Wales now stands at £191,880, over £30,000 less than the Ceredigion average.

  

Mike Jones, Interim CEO at Principality Building Society, said: “We remain cautious about how we interpret average house price data for Q2 because sales are down by more than 60 per cent compared with the same period in 2019. The temporary increase in the Land Transaction Tax to help first time buyers in particular, is likely to stimulate the market in the short-term, along with increased levels of activity following the easing of lockdown restrictions. 

 

“However, once the UK Government furlough schemes come to an end in October, there may well be a rise in job losses and this, in turn, is likely to have a negative impact on consumer confidence in general. If this happens, then we would expect to see lower levels of activity in the housing market across the UK, and not just Wales.”

 

Most property observers are anticipating that average prices in Wales will continue to rise in Q3, following the increase in the Land Transaction Tax threshold from £180,000 to £250,000, which took effect from 27 July, although the savings do not apply to those buying a second home or buy-to-let property.

 

As well as Ceredigion, six other local authorities in Wales saw house prices rise during Q2, predominantly in the south of the country, with the Vale of Glamorgan increasing at the highest rate by 14 per cent to an average price of £300,903.

 

The news comes a week after estate agent, Morris, Marshall and Poole, claimed Mid Wales was experiencing a mini housing boom as people look to relocate from urban areas.

Andrew Turner, a Chartered Surveyor and Partner at MMP said: Prior to lockdown the region’s market was very active.

“When lockdown hit us the market went flat, primarily because of the rules on property moves and viewings.

 

“People were simply waiting for the market to re-open and within days of the restrictions on moving and viewings being lifted the market began to heat up immediately.

 

“Sales and completions were taking place within days. We had one property sold within 24 hours of the property being placed on the market on the day restrictions were lifted.

“The pandemic has made a lot of people re-assess their lifestyles and home living arrangements. With many undertaking more active exercise, or wanting larger open space, those living in larger cities and towns are seeking homes with larger gardens or close to areas where they can reach open countryside,”