House prices increased by 1.2% – more than the average for Wales – in Monmouthshire in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 14.5% over the last year.

The average Monmouthshire house price in May was £340,326, Land Registry figures show – a 1.2% increase on April.

Over the month, the picture was similar to that across Wales, where prices increased 0.9%.

Over the last year, the average sale price of property in Monmouthshire rose by £43,000 – putting the area eighth among Wales’s 22 local authorities with price data for annual growth.

The highest annual growth in the region was in the Vale of Glamorgan, where property prices increased on average by 24.8%, to £318,000. At the other end of the scale, properties in Denbighshire gained 6.9% in value, giving an average price of £192,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said:“The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Monmouthshire spent an average of £263,000 on their property – £33,000 more than a year ago, and £82,000 more than in May 2017.

By comparison, former owner-occupiers paid £396,000 on average in May – 50.5% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Monmouthshire in May – they increased 1.6%, to £229,431 on average. Over the last year, prices rose by 13.7%.

Among other types of property:

  • Detached: up 1.1% monthly; up 15.2% annually; £493,564 average
  • Semi-detached: up 1.3% monthly; up 14.7% annually; £282,141 average
  • Flats: up 0.3% monthly; up 11.1% annually; £166,320 average

How do property prices in Monmouthshire compare?

Buyers paid more for properties in Monmouthshire than anywhere else in Wales in May. The average price paid would buy 2.6 homes in Blaenau Gwent (£132,000), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Across Wales, property prices are high compared to those across the UK, where the average cost £283,000.

Factfile

Average property price in May

  • Monmouthshire: £340,326
  • Wales:£212,414
  • UK: £283,496

Annual growth to May

  • Monmouthshire: +14.5%
  • Wales: +14.4%
  • UK: +12.8%

Highest and lowest annual growth in Wales

  • The Vale of Glamorgan: +24.8%
  • Denbighshire: +6.9%