A number of areas surrounding Cardiff have recorded higher house price growth than the city itself since the start of the pandemic, according to the latest research from Halifax.
Since lockdown restrictions first eased last summer, buyer demand has been fuelled in part by a desire for larger properties with more outdoor space, as people’s work-life priorities have shifted during the pandemic.
Across the UK, this has helped to drive faster price growth in areas further from major city centres, where buyers perceive they’ll get better value for money.
Based on analysis of mortgage transactions included in the Halifax House Price Index between March 2020, when the first lockdown restrictions were introduced, and June 2021 when the Stamp Duty holiday began to be unwound, data shows that Cardiff saw house price growth of 11.4%.
While this represents strong growth, some areas around Cardiff have seen even higher levels of house price inflation, with properties in Rhondda Cynon Taf up by 27.3% on average, while in Caerphilly, Blaneau and Gwent, the figure is 19.2% for the same period.
Ieuan Rees, Halifax mortgage and protection adviser, said:
“The pandemic has had a huge impact on the housing market right across the country and Wales is no exception. While Cardiff itself has seen strong house price growth on a par with some of the best performing cities across the UK, many of its surrounding areas have witnessed even more exceptional average price rises.”
“It’s clear from the home buyers I’m speaking to that many have prioritised space over location, as a result of more time spent at home over the last year. As consumers look for value in the market, that inevitably leads people to look further afield from major city centres, where you tend to get more property for your money.
“We’ve seen evidence of this in many areas around country but local markets in areas such as Rhondda Cynon Taf have seen particularly big gains, with double-digit price growth meaning buyers can be paying over £29,000 more than at the start of last year.”