Housing Market in Wales Shows Signs of Weakening with Falling Sales and Softer Prices
The Welsh housing market continued to show signs of slowing in August, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. Surveyors report that price growth has softened, buyer demand remains muted, and sales activity is declining, reflecting cautious sentiment across the property sector.
A net balance of -24% of surveyors in Wales reported falling prices over the past three months, marking the lowest reading since January 2024. This decline also outpaces the broader UK average, where the net balance sits at -19%. Looking ahead, expectations remain subdued, with a net balance of -18% of Welsh surveyors forecasting further price declines in the near term. While this aligns closely with the UK-wide sentiment of -20%, surveyors remain more optimistic over a 12-month horizon.
Buyer Demand and Sales Activity Remain Muted
Demand for homes in Wales has softened, with a net balance of -34% of surveyors noting a drop in new buyer enquiries for the second consecutive month. Supply is also constrained, as new instructions to sell fell to a net balance of -23%, down from -13% in July.
These trends have contributed to a decline in property transactions, with a net balance of -23% of Welsh surveyors reporting a fall in newly agreed sales. While still negative, this is an improvement compared to the -55% recorded in the previous survey, suggesting some market stabilization. Expectations for sales over the next three months are slightly more positive, with only -3% of surveyors anticipating further declines, compared to -10% and -28% in the preceding two surveys.
Rental Market Trends Remain Flat
The rental sector in Wales has also experienced limited activity. Surveyors report that both tenant demand and landlord instructions remained flat through July. Looking forward, rents are expected to stay stable over the next three months, reflecting balanced but subdued rental market conditions.
Market Outlook
Overall, the August RICS survey highlights a cautiously weakening housing market in Wales, characterized by softening prices, reduced buyer activity, and subdued sales and rental markets. While some indicators suggest minor stabilization, ongoing market challenges, including affordability pressures and tighter mortgage conditions, continue to influence buyer and seller sentiment.
Industry experts stress the importance of monitoring mortgage rates, affordability, and housing supply trends, which will play a critical role in shaping the Welsh property market in the coming months.
