NEWPORT had the highest number of new-build properties built in the last year as house prices reached new heights, according to new figures.

A report by Principality Building Society shows that average house prices in the area reached a new peak of £183,683, higher than the national average in Wales - £179,855.

Prices have been boosted by houses on new developments in the city, and in outlying areas such as Langstone and Rogerstone, being sold at premium rates.

Elsewhere Caerphilly’s average price of £144,126 is the second highest price hike across al of Wales at 7.3 per cent, second only to Pembrokeshire’s 8.1 per cent increase.

But average prices in Blaenau Gwent and Monmouthshire fell marginally by two per cent and 1.4 per cent respectively.

Tom Denman, chief financial officer at Principality Building Society, said that the increase in house prices reflected the housing market “bouncing back” from uncertainties surrounding Brexit and the economy in early 2017.

“Growth was largely due to proportionally more transactions in higher demand areas such as Cardiff and Newport,” he said.

“New builds in areas such as Newport, have resulted in a price premium that has helped to push up average prices in those regions.

“A shortage in housing supply, high employment, and low interest rates, have all contributed to growth.

“Similar economic conditions for 2018 indicate that house prices will continue to grow modestly in Wales.”

After stamp duty was scrapped for first-time buyers, Principality say that the terraced housing market saw a small boost.

But this did little to the national picture - while prices reached high figures between August and December, the number of houses sold across Wales fell by nine per cent on the same period in 2016.

Figures show that flat sales fell by 26 per cent, detached houses down by 10 per cent and semi-detached down six per cent.

Terraced properties, meanwhile, saw the smallest decline at five per cent.

Principality estimate that the volume of sales will be slightly higher by 0.3 per cent than 2016 and 4.8 per cent higher than 2015.

“There has been slow a down in activity recently off the back of the Bank of England interest rate increase,” said Mr Denman.

“However the removal of stamp duty charges for first time buyers of properties up to £300,000 since the November Budget could drive different first time buyer behaviour before the Land Transaction Tax comes into force in April.”