House prices in Wrexham have risen when compared to this time last year by more than 6% to a new average price of £244,400.

The figures have been released from Principality Building Society’s Wales House Price Index for Q3 2022 (July-September), which demonstrates the rise and fall in house prices in each of the 22 local authorities in Wales.

Despite the annual price increase of 6.4% in Wrexham, the local authority did see a dip of 3.5% over the quarter.

The average house price in Wales has reached a new peak of £245,893 as the country continues to experience record price growth in the third quarter of 2022, demonstrating a 12.4% annual increase, and a 2.2% quarterly increase.

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Property prices are also up in all 22 local authority areas when compared with the same time last year, with 16 authorities reporting double-digit annual price increases - above the current rate of inflation (9.9%).

Shaun Middleton, Head of Distribution at Principality Building Society, said: “It is slightly strange talking about house prices in Wales reaching new peaks when so much has happened at the end of the third quarter with the UK government mini-budget and continued cost of living pressures. Transaction levels remained relatively strong over the third quarter, helped in part by buyers wishing to complete their house purchase with the attractive mortgage deals they had previously secured.  

“With interest rates surging higher, meaning repayments on mortgages will become much more costly per month, the market faces significant challenges in the immediate future."

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Principality’s Wales House Price Index estimates there were as many as 12,400 transactions in Wales in Q3, 13% higher than in Q2 and 1% lower than a year ago, but on a par with corresponding pre-Covid (Q3 2019) levels. 

Shaun Middleton continued: “It must be remembered that higher energy costs and general rises in cost of living are increasing overall household expenditure which will have to be factored into mortgage lenders calculations when assessing borrowers’ ability to repay.

"This will reduce the amount lenders are able to loan to the borrower, make it even harder for first time buyers to obtain a mortgage and will also mean many people will be unable to obtain the bigger mortgage they need to move to their next home. For this reason, many are predicting a decline in house price inflation. However, there are many unknowns at this stage."

For more information go to: www.principality.co.uk/mortgages/house-price-index