House price growth in Wales is expected to remain steady in 2026, with Cardiff and Newport emerging as the strongest performing markets, according to new analysis from property website Zoopla.
The research, which assessed housing market conditions across 120 UK postal areas, suggests that while Scotland and Northern England offer the strongest overall prospects for price growth next year, several parts of Wales continue to show resilience driven by affordability and demand.
Zoopla’s analysis looked at a range of indicators including how quickly homes are selling, the proportion of properties seeing asking price reductions, levels of older housing stock, and overall affordability. While average UK house prices are forecast to rise by 1.5% in 2026, the data highlights significant regional variation.
In Wales, Cardiff ranked 35th overall in the UK, with an average house price of £217,400 and annual price growth of 2.1%. Homes in the capital are selling faster than the UK average, with a typical time to sell of 36 days. Newport followed closely behind, ranking 42nd, with average prices of £209,500 and annual growth of 2.4%, also benefiting from relatively quick selling times.
Other Welsh markets showed more mixed conditions. Swansea, despite similar coastal characteristics to Cardiff and Newport, ranked lower at 87th. While annual price growth in Swansea stands at 2.3%, the city has the highest proportion of homes in Wales seeing asking price cuts of more than 5%, indicating softer demand and greater price sensitivity among buyers.
Llandudno and Llandrindod Wells also sit lower in the rankings, reflecting longer selling times and higher levels of price reductions, while the Shrewsbury postal area, which includes parts of mid Wales, ranked 67th with more modest growth of 1.4%.
Zoopla says the Welsh picture reflects a balance between affordability and demand, with urban centres connected to employment opportunities continuing to perform more strongly than some rural and coastal areas where supply has increased.
Richard Donnell, Executive Director at Zoopla, said: “Whether you’re buying or selling, local housing market conditions matter more than ever when making housing decisions in 2026. Basing decisions on the value of a home, affordability, demand and selling times in the local area will help sellers and buyers move with greater confidence.
“Our analysis highlights the areas with the strongest potential for continued growth in sales activity and above-average house price rises in 2026. While prospects are strongest in Scotland and Northern England, opportunities exist across the UK where demand and affordability remain well aligned. Price growth is expected to be slower in lower-ranked markets, particularly across parts of Southern England and London, although improving affordability means the outlook in London is more positive than in recent years.”
Zoopla added that the performance of individual homes within Welsh markets will continue to vary, depending on property type, location and pricing strategy, making local knowledge increasingly important for buyers and sellers planning a move in 2026.
