Homes in Pembrokeshire and Ceredigion are most likely to have increased in value by more than the average salary in the past 12 months.

That is the finding of new research by property portal Zoopla, which says that nearly a quarter of homes in Wales (22%) have increased in value by more than the average salary in the country.

Zoopla’s data found that Pembrokeshire is the place where homes are most likely to have increased in value by more than average earnings.

The average salary in Pembrokeshire is £26,300 – and 42% of homes in the area have gone up by more than this in the past 12 months.

Other parts of the country saw a high proportion of homes likely to be earning more than the average salary in the area.

Pembrokeshire was closely followed by Ceredigion, where the average salary is £26,200 – but 39% of homes there increased in value by more than this in the past 12 months.

Anglesey (38%), Powys (36%) and Gwynedd (29%) are the other places in Wales where a large proportion of homes have gone up by more than the average salary for that area in just one year.

Cardiff comes in seventh on the list with 25% whilst in Swansea, the figure is 20%.

The data suggests that homes in rural and coastal locations have been in particularly strong demand during the course of the pandemic, with many reportedly seeking out a lifestyle change.

Gráinne Gilmore, Head of Research at Zoopla, said: “There has been strong demand from home buyers in Wales since the housing market reopened after the first lockdown in June last year.

"This demand has been underpinned by people searching for more space, making a lifestyle change or climbing onto the first rung of the property ladder.

"At the same time, the savings of up to £15,000 on offer as a result of the LLT holiday in the 12 months to July also encouraged people to make a move.

"This has put upward pressure on house prices, with values rising significantly.

“When this price rise is translated into pounds and pence, it means nearly a quarter of homes in Wales have risen in value by more than the equivalent of a year’s earnings in the country over the space of 12 months.

"Anyone can get an instant estimate on the value of their home at MyHome on Zoopla, where they can also link directly to a Zoopla estate agent for a valuation.”