Property prices in Wales grew at the fastest rate of anywhere in the UK in 2021, with Welsh local authorities making up 12 of the top 20 locations in England and Wales for year-on-year rural price growth, according to research by Hamptons estate agency. Carmarthenshire prices were up 17 per cent, Blaenau Gwent up 16 per cent, Pembrokeshire and Rhondda Cynon Taf near Cardiff up 15 per cent and Wrexham and Gwynedd both 14 per cent according to the Land Registry.  The market is some areas such as Pembrokeshire, Carmarthenshire and Ceredigion was exceptionally busy, according to Carol Peett, Managing Director of buying agency, West Wales Property Finders.

“We have not seen this much activity in the housing market in West Wales since the early 2000s, with properties from bungalows right through to large country houses in high demand”, she said.  “Properties with sea views were particularly popular”

“We have seen a huge rise of people returning to their roots due to the pandemic. People who were born and grew up here in West Wales and who went away for university or to work are returning in large numbers.  We have had a number of doctors from major UK hospitals coming home to work locally having worked flat out over the past 18 months with Covid patients; people moving back due to being able to work from home, which the roll out of Superfast broadband has expedited, and others who have re-evaluated their lifestyle due to Covid and are now determined to give their children the sort of childhood they experienced here and are moving back and starting up small businesses close to their extended families.  The upgrading of Broadband has also seen an increase in families moving here where they can work from home and perhaps just attend their offices in London, Bristol, Cardiff, etc. for one or two days a week.  Others who have endured lock down with children in a small flat or house without a garden have taken this opportunity to escape the towns and cities and buy a smallholding in rural Wales”.

Other who were born here bought holiday homes and buy to holiday lets due to the upswing in staycationers.  Most, however, intend to move to these properties full time once work allows or when they retire and the additional income stream these holiday lets provide speed up their ambition to move back full time. 

Despite the clamour by the Welsh Sennedd about the increase of holiday homes, research has shown an actual fall of 5% year on year on those purchasing second homes.

Generally, the majority of those either buying second/holiday homes, buy to holiday lets, returning home to live or moving to the area from away, are buying properties valued at over £500,000, way above the budget of local buyers, which again is contrary to the Welsh government's theory that this is pricing locals out of the market.

We predict that prices will continue upwards in 2022, particularly for coastal properties, but overall increases will not be at quite the rate of the past 18 months.  We predict coastal properties will rise by some 12% in 2022 but the average property prices only by circa 5%-7% as more properties come onto the market.  Smallholdings, which have been extremely sought after, may become more plentiful as those who made the kneejerk reaction to quit the city after lockdown, decide it is not for them after enduring a cold muddy winter in the country.