HOUSE prices in parts of Gwent have hit record highs amid a surge in demand for properties.

Figures for the third quarter of 2021, covering July to September, show that house prices in Newport surged 15.1 per cent – the highest of any council area in Wales.

Property prices for those three months were also up in Blaenau Gwent (3.8 per cent), but fell in the rest of the Gwent region.

Caerphilly house prices fell by 2.3 per cent, Monmouthshire's by 3.6 per cent and Torfaen's by 2.5 per cent.

And although 10 of Wales' 22 council areas saw prices fall on average between July and September, the figures for the past year show every part of Wales saw average prices grow.

Blaenau Gwent has recorded the highest annual rise in house prices, shooting up by 22.5 per cent. The average property there now costs £124,000.

Annual rises for the rest of Gwent included an 8.8 per cent increase in Caerphilly, where the average home will now set you back £171,000; and a 4.8 per cent hike in Monmouthshire, where property now costs on average £319,000.

In Newport, house prices have jumped 15.1 per cent over the past year, and now cost on average £239,000; and in Torfaen property prices are up 7.3 per cent on last year, costing on average £193,000.

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The figures were compiled by the Principality building society for its House Price Index.

Tom Denman, Principality's chief financial officer, said: “The Welsh housing market, like those elsewhere in the UK has outperformed expectations this year.

"Demand has been higher and more resilient than many expected, and although market support in the shape of the Land Transaction Tax holiday and furlough payments has now ended, the scale of pent-up demand has been such, aided by savings accumulated in lockdown and continued low mortgage rates, that the market has continued to flourish."

Mr Denman noted that the rate of growth had "slowed" in the most recent quarter.

"Clearly, there is now an expectation that interest rates will rise in the near term, albeit on a modest basis, and that this will still have an impact for many households and not least those active in buying and moving homes,” he added.