This is according to the latest figures from the Wales House Price Index from Principality Building Society in its Wales House Price Index for the second quarter.

Despite ongoing affordability pressures, the increased number of transactions – over 10,000 in Q2 (up 13% on last year) – pointed to  growing buyer confidence.

Torfaen recorded the highest quarterly price change of any local authority at 14%, driven by periodic high-value sales and limited housing supply. Carmarthen also reported an increase of 6.3%, while Flintshire saw a 3.3% quarterly rise.

However other areas, including Gwynedd, saw prices fall in the second quarter, dropping 7.3% from the first quarter of 2025. A drop likely influenced by policy shifts such as the Welsh Government’s adjustments to second home taxation and the impact of new planning regulations.

Commenting on the latest data, Principality chief financial officer Iain Mansfield says: “The housing market in Wales continued to stabilise in the second quarter of 2025, with prices holding broadly flat compared to the start of the year. Encouragingly, the steady increase in transaction volumes signals increasing confidence among buyers.”

He added: “While market conditions remain challenging, a downward trend in mortgage rates is helping to create a more favourable environment for buyers. This shift is contributing to a gradual uplift in consumer confidence as we move into the second half of 2025.”