The Welsh housing market demonstrated a period of stabilisation in the second quarter of 2025, with average house prices holding steady while property sales experienced a significant surge. According to the latest Wales House Price Index from Principality Building Society, the average price of a home in Wales reached £238,098 between April and June, marking a 0.7% increase year-on-year. This figure remains just 4.6% below the market’s peak of £249,000 recorded in 2022.
Despite persistent cost-of-living challenges and elevated interest rates, buyer confidence appears to be on the rise, evidenced by a notable increase in transaction volumes. The second quarter saw over 10,000 property sales across Wales, a 13% increase compared to the same period last year. This marks the fourth consecutive quarter with sales exceeding the 10,000 mark, suggesting a sustained recovery in the property market.
“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,” said Iain Mansfield (pictured), chief financial officer at Principality Building Society.