Property prices in Wales are falling

Wales. It is delightful in the natural beauty of the region has always suffered from economic problems. The residential property prices in Wales have fallen to level of December 2012 in the absence of reasonable credit schemes. Recent studies index LSL/Acadametrics showed that the average property value in Wales in March 2013 amounted to £151,780, which is 0.2% less than the previous month. During the year, the average price declined by 1.1%.

The housing market in Wales does not develop in the absence of normal credit terms for those customers who do not have a large down payment. Many buyers who wish to buy their first property in Wales, I find that to get a mortgage on reasonable terms is impossible and as a result, they remain outside of the market for the sale of real estate, being on the rental market. As a result, the property is sold sluggishly, especially in the low price range. It is, accordingly, reflected in the entire chain of the construction industry. The demand for housing is high and people are desperate to buy their own homes, not to be hostage to expensive rental market, but all attempts to break on the strict requirements of the mortgage banks.

In each region the growth rate of housing prices is closely tied to the performance of the economy of each region. Some regions are more affected by rigid economy of the public sector, inflation, lack of private sector investment and unemployment. All of these factors suppress the growth of housing prices.

The index showed that in March prices fell for the property in 15 of the 22 unitary municipal districts of Wales. In these circumstances, as it is impossible by the way, came the program of the government “Help to Buy”, which aims to offset those deficiencies in mortgage lending that do not allow to breathe life into the industry the construction market in Wales.

In 2013 we are seeing positive signals for recovery of the market. Mortgage rates are down and there are very high expectations that the market of the residential sector in Wales will make great strides in recovery this year, we are already witnessing in other areas of the UK.

The data also showed that the range of price fluctuations declined. For example, in the past month, prices ranged from a 13% drop to 8.8% growth in March, the largest drop was 7.9%, and the highest growth of 7%.

Cardiff also follows the General trend, albeit at a slower pace. In Cardiff prices fell by 1.4% compared to the previous month.

® Maxim Savitsky 23.05.2013