The average price of properties in Monmouthshire by almost 10 per cent this year, ensuring the county retains its spot as the most expensive place to live in Wales.

In contrast, it means the figure in the county is more than double that in the neighbouring county borough of Blaenau Gwent, which remains the most affordable area to buy a house in the country.

Principality Building Society’s analysis of the property market has revealed that at £387,606, Monmouthshire is roughly £80,000 more expensive than second-placed Vale of Glamorgan (£307,905) and Cardiff (£303,323). The Welsh average is £258,000.

“Monmouthshire remains Wales’ highest-value housing market, with average prices rising by 9.4% over the past year and by 11.1% during the second quarter,” said Andy Mottram, Head of Lending at Principality Building Society.

“The strength of price growth highlights the performance of the local market, but higher property values also present affordability considerations for people looking to buy, particularly where house prices are high relative to local incomes.”

“More broadly, we’re seeing a more active Welsh housing market, with mortgage activity among both first-time buyers and home movers increasing during the second quarter.”

That means house prices in the county is further out of reach for first time buyers, as the average house price here reaches 4.6 times more than the average wage. For those moving home, the figure was 7.3 times the average income.

Average purchase prices increased in 17 of Wales’ 22 local authorities, although the pace of growth varied significantly across the country. Four local authorities recorded annual price declines, with Ceredigion (-9.3 per cent) seeing the largest fall, followed by Swansea (-4.1 per cent), Merthyr Tydfil (-1.4 per cent) and the Vale of Glamorgan (-0.9 per cent). Flintshire’s average prices remained stable.

Mr Mottram also stated that that increasing the supply of high-quality homes will be key to unlocking a more affordable housing market.

“Improving the supply of suitable homes will be critical to improving affordability and meeting the needs of growing communities,” he said.

“As a business, we remain focused on opening more doors for our customers, helping to remove the barriers that people can face when looking to buy a home and working with our partners to support communities across Wales.”

“Looking ahead, we expect the market to remain resilient through the second half of the year, although continued inflation and ongoing cost-of-living pressures could weigh on household affordability and the pace of activity.”

The average purchase price for a mortgaged residential property in Monmouthshire increased by 11.1 per cent compared with the previous quarter, according to the latest Principality Building Society Wales House Price Index for the half-year 2026 (January-June), which tracks house price movements across all 22 Welsh local authorities. Principality Building Society’s analysis of CACI data shows that Monmouthshire recorded the fifth-highest annual increase in average purchase prices across Wales, behind Anglesey (+22.2 per cent), Wrexham (+16.0 per cent), Caerphilly (+14.7 per cent) and Pembrokeshire (+11.5 per cent).