May 2025 – Welsh Housing Market Figures

If there’s one word that sums up the Welsh housing market in 2025, it’s variation. Over the past year, we’ve seen a wide range of movement in house prices across the country. The latest quarterly figures from The Principality show a swing of a 11.8% rise to a -5.9% fall between the regions. So, from strong growth in some areas, there have been unexpected dips in others. For anyone looking to buy, sell, or remortgage, understanding these regional shifts is key.

As an independent mortgage broker based in Barry, South Wales, we’ve been working closely with clients who are feeling both excited and uncertain about these changes. In this article, we’ll walk you through the latest data. We’ll highlight what it means for people in areas like the Vale of Glamorgan, our home region, and explain how we can help you make smart, informed mortgage decisions in a fast-moving market.

What’s Happening Across the Welsh Housing Market?

Let’s start by summing up the headlines from The Principality report (click on this link to see the report in full).

The latest figures show that the average house price in the Welsh housing market is around £238,400, up 4% year-on-year. The first quarter of this year saw a rise of 2.2%, an indication that the Welsh housing market is in recovery. However, we are still 4.4% lower than the peak of £249,00 in 2022. Additionally, this average masks a far more complex picture underneath. While some parts of Wales are seeing prices rise rapidly, others are seeing a slowdown or even a drop. (Please see the chat for the full breakdown.)

Bridgend, for example, has seen a strong 11.8% year-on-year rise, likely driven by growing demand, affordability, and good transport links. Meanwhile, in some coastal and rural areas of Wales, prices have actually fallen sharply in some cases. This could be as a direct result of government intervention when buying a second home. The Welsh government recently increased the land transaction tax for additional properties (full details in this link). Likewise, some local authorities in tourist areas have increased the council tax on second homes.

This diversity in the Welsh housing market means that timing, location, and expert mortgage advice matter more than ever.

Focus on the Vale of Glamorgan: Prices Continue to Rise

While many areas across Wales have experienced modest growth or even price drops, the Vale of Glamorgan, our home county, stands out for all the right reasons. House prices in the Vale have risen by an impressive 7.5% over the past year, outpacing the Welsh housing market average of 4% by a clear margin of 3.5%.

This continued upward trend reinforces the Vale’s reputation as one of the most desirable places to live in Wales. With its beautiful coastline, excellent schools, strong commuter links to Cardiff, and a mix of vibrant towns and peaceful villages, it’s no surprise that the demand remains high.

What Does This Mean?

For Buyers:

• Rising Prices Mean Act Now: With values climbing and steady growth predicted to continue, buyers may need to act decisively. Delaying a purchase could mean paying more in the coming months.
• Mortgage Affordability is Crucial: As prices increase, so do the demands on your mortgage budget. Securing the right deal with the most competitive rates becomes even more important. Of course, on the plus side, recent Bank of England cuts to interest rates mean there are deals to be had.
• Smarter House Hunting: Buyers should be clear on their priorities and ready to move quickly when the right home appears. A recent report by the BBC highlighted that buyers are being outbid in the market at the moment. (Please read the full report here)

For Sellers:

• A Stronger Position: Higher house prices give sellers more confidence when bringing their property to market.
• More Interest, Better Offers: With demand remaining healthy, especially in sought-after areas like Penarth, Cowbridge, and Barry, well-presented homes can attract competitive offers.
• Time to Upsize: If you’re thinking of moving to a larger home, the added value in your current property could give you a stronger deposit and more borrowing power.

Local Knowledge Counts!

It’s certainly a moment of change for the Welsh housing market. With Savill’s predicting they ‘expect house prices in Wales to outperform the UK average over the next five years at 25.2%’ (April 2025 article –read in full here).

Now, as we have seen, one of the most fascinating aspects of the current Welsh housing market is just how different the story is from one region to another. These regional differences highlight just how important it is to take a localised view when buying or selling a property, because national averages don’t tell the full story.

That’s where we come in! As an independent mortgage broker, we help clients make sense of what’s really happening in their specific area, whether they’re in Barry, Cowbridge, Penarth, or beyond. We do, after all, cater for clients throughout the UK.

How We Can Help You Navigate the Welsh Housing Market

With house prices in the Vale of Glamorgan rising faster than the Welsh housing market average, buyers need a clear, confident mortgage strategy more than ever.

As a local independent mortgage advisor based in Barry, we understand the unique dynamics of the South Wales property market, including the fast-moving, competitive nature of areas like the Vale.

Here’s how we help:

• We work for you, not a bank. We’re completely independent, meaning we search across the whole market to find the right mortgage for your needs.
• We understand the local market. Whether you’re buying in the Vale, Bridgend, or Cardiff, we know the ins and outs of what’s happening.
• We make the process easier. Mortgages can feel complicated, but we’re here to make things clear, straightforward, and tailored to your life. From pre-approval to moving day and beyond, we will be there to support you.

Whether you’re buying your first home, moving within the Vale, or exploring remortgage options, we’re here to guide you through the process with clarity and care.

Final Thoughts: Embracing Change in the Welsh Housing Market

The Welsh housing market in 2025 is full of movement. But change isn’t always a bad thing. In fact, it often brings opportunity. Whether you’re a first-time buyer, a homeowner looking to move, or someone exploring your remortgage options, now is a great time to pause, reflect, and make informed choices.

And if you’re not sure where to start, then remember, that’s what we’re here for. Let’s talk about your goals, your budget, and how we can help you get the best possible mortgage in this ever-evolving market.

Get in touch today and let’s navigate the Welsh housing market together with confidence, clarity, and expert advice:

Yes Please, I’d like to talk! (click the link)