HOUSE prices in Newport reached a new peak in the peak between July and September.

The figures released from Principality Building Society’s Wales House Price Index for the three-month period show the average house price in the city is now £213,660.

There has been a rise and fall in house prices in each of the 22 local authorities in Wales.

House prices in Newport rose by five per cent compared 12 months earlier, and 4.6 per cent compared with the previous quarter - and was one of six local authorities in Wales to reach a new peak price in July to September 2020.

Across Wales, a surge in property sales following the end of the first lockdown in June pushed the average house price up by three per cent per cent annually and 2.2 per cent quarterly to an average of £196,165.

However, the number of property sales was down by 58 per cent between April and September when compared with the same period in 2019.

Mike Jones, chief risk officer at Principality Building Society, said: “Although it might appear to be somewhat implausible to be reporting rising prices in the middle of a pandemic, we believe this reflects the increase in demand following the Q2 lockdown.

“It is also potentially the desire for a lifestyle change for some who during lockdown have realised that it is possible to work from home, avoiding the necessity to travel to work on a daily basis.

“The demand for larger homes with additional space, including outdoor areas, has consequently risen however, and with little new supply coming to the market, prices also rose rapidly.


“In terms of outlook for the market, the extension of the furlough scheme and mortgage payment deferral scheme could, in the short term, help offset the impact of weakening economic performance.

“However, many experts continue to forecast a rise in unemployment during the coming months and that will inevitably impact consumer confidence and the housing market”.

In Wales, the Land Transaction Tax (LTT) concession introduced in July moved the threshold from £180,000 up to a new level of £250,000 until 31 March 2021, worth a maximum of £2,450 to people who buy a property for this price.

“Given the relatively low savings that can be obtained on the LTT duty in Wales, we do not consider the impact of the temporary rate will be as significant as it appears to be in England’s housing market,” Mr Jones added.

“The temporary LTT holiday in Wales does not apply to second homes or buy-to-let properties, where an additional rate of three per cent remains payable."