Wales saw an annual property price rise of over 10% in the first quarter of 2021, according to Halifax.

This is the highest gain since early 2005.

The price rise seen in the North West was the strongest for 14 years at over 8%.

Yorkshire & Humberside, the South West and the East Midlands continued to record annual price gains around the 7% mark.

Capital slowdown

Greater London saw a noticeable slowdown in house price inflation, with the 2.1% annual price rise the lowest in over a year.

Halifax said that the ‘negative effects of the pandemic on rental demand, Brexit and recent changes in stamp duty surcharges for international buyers are all likely to have weighed on demand in the first quarter’.

Unsurprisingly, Greater London house prices remain by far the highest in the UK, with the typical property costing over £505,000 which is more than double the national average. The South East, Eastern England and the South West also continued to record house prices above the UK average.

The cheapest house prices were again recorded in the North East (£148,758) and Northern Ireland (£156,316).

National picture

UK annual house price inflation in the first quarter of this year across the UK fell to 5.7% from 7% in the previous quarter, said Halifax.

On a quarterly basis, prices were up 0.3%, the slowest rise in the past three quarters.

Paul Smith, economics director at IHS Markit said: “Although house prices rose at a slower rate in the first quarter – likely reflective of some uncertainty in the early part of the year around the stamp duty holiday, plus a number of factors weighing on the London market – activity remained buoyant and
overall prices were again sharply up when compared to a year ago.

“Market activity continues to be supported in the main by shifting preferences amongst buyers for greater space, especially amongst those in secure employment, amid expectations that working from home will continue in at least a hybrid form once the pandemic has passed.

“With the stamp duty holiday now extended, mortgage availability support for first-time buyers increased and growing expectations that UK economic performance will improve markedly in line with the success of the vaccination programme, price pressures are set to remain elevated into the autumn at the very least.”