The average house price in Monmouthshire has risen by more than 10 per cent over the past year, new figures have revealed.
House prices in Monmouthshire were the highest of any region in Wales in the last year, reaching an average price of £373,039.
The figures have been released from Principality Building Society’s Wales House Price Index for Q3 2022, which demonstrates the rise and fall in house prices in each of the 22 local authorities in Wales.
Monmouthshire’s average house prices have risen by 10.8 per cent in the past year, and 4.8 per cent in the past quarter.
The research estimates there were as many as 12,400 transactions in Wales in the third quarter of this year, which is 13 per cent higher than in the second quarter and one per cent lower than a year ago.
Average figures show that sales of detached homes have increased 11 per cent annually, while semi-detached and terraced properties have increased 13-14 per cent annually.
In contrast, flat sales report just a 1 per cent increase year-on-year.
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.
“Even though the Welsh Government has increased the Land Transaction Tax threshold from £180,000 to £225,000 in a bid to support first time buyers and those wishing to move homes, affordability will come under considerable pressure, which could mean that purchasing demand will reduce.
“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.
“A lot does depend on any potential government interventions, as well as, of course, on the actions of the Bank of England with regards to future rate rises. By the time of the fourth quarter report, there will hopefully be more clarity on what the outlook is for property prices.”