The average price of a home sold in Wales increased to £238,413 in the first quarter of 2025, up 2.2% on the previous quarter and 4.0% higher than the same period last year. 

The figures have been released by Principality Building Society in its Wales House Price Index for Q1 2025 (January – March), which demonstrates the rise and fall in house prices in each of the 22 local authorities in Wales.  

While the society says affordability challenges remain, the steady rise in both prices and the number of transactions – which reached 10,000 in Q1 (up 20% on last year) – suggests buyer confidence is still growing, despite households continuing to navigate cost-of-living pressures, in an elevated rates environment and global economic uncertainty.  

Outside of the national Welsh picture of moderate rises in prices, there are mixed regional performances.

Three authorities in South Wales saw house prices reach record highs, with Bridgend seeing the highest annual change of any authority at 11%, closely followed by Blaenau Gwent which reported an increase of 6.8% and Caerphilly with 6.6%. 

Other areas, including Ceredigion, saw prices fall in Q1, dropping 10.1% from the final quarter of 2024. 

Meanwhile the year-on-year trend for the same region suggests just over a 3% drop, with some experts suggesting this is due to policy changes such as Welsh Government’s adjustments to second home taxation. 

Overall, Principality Building Society research, based on HM Land Registry data, reveals that price declines in regional areas have eased over the past three quarters compared to the same period last year, offering some signs of stability for buyers and sellers in a shifting market. 

A society spokesperson says: “The housing market in Wales has had a positive start to 2025, with prices rising quarter on quarter at their fastest pace in over two years.  

“Despite a challenging economic backdrop, we’re seeing a year-on-year growth of transactions, spurred on by supply challenges and falling rates. Meanwhile, affordability remains a key factor shaping the market landscape.”