The average house price in Wales has reached a new record of £233,361, increasing by 3% during Q1 2022, despite high transaction levels starting to ease, according to Principality Building Society’s house price index.

The data, which demonstrates the rise and fall in house prices in each of the 22 local authorities in Wales, found that Wales continues to experience some of the strongest property price increases in the UK, with house prices rising to 9.7% annually.

Blaenau Gwent, Carmarthenshire, Ceredigion, Merthyr Tydfil and Pembrokeshire all reported high price growth year-on-year of between 13% and 14%, while Monmouthshire reported an annual price rise of 18.8% to £378,228.

Monmouthshire also had the highest quarterly price increase of 14.3% and was one of 14 local authorities to report new peak house prices as of March.

The index showed that Denbighshire was the only local authority in Wales to record a decrease in house prices annually, dropping by 5.9% to £197,452.

Prices dropped in Denbighshire over the quarter too by 4.1%, a pattern which Principality’s index highlighted has continued for several quarters since its peak price in June 2021.

Despite the strong headline performance, Principality Building Society chief financial officer Tom Denman says: “The underlying data gives some support to the view that the market in Wales may be beginning to slow. With cost of living pressures mounting and consumer confidence falling, it is possible that demand within Wales is moderating.”

“None of this should be taken to mean that the market is moving into recession, far from it, but there is a sense here of a slowing market. The question now is whether households will hold back either entering the housing market or trading up due to the current uncertain conditions,” Denman adds.