House prices rose significantly across west Wales in the past 12 months, although there are some signs that the rapid pace of increase has started to slow down.

Carmarthenshire saw house prices increase by an average of 19.9% over the last year to £190,176, according to new house price data for Q2 2021.

Meanwhile Pembrokeshire house prices rose by 17.1% annually to an average £227,985 while Ceredigion saw annual house price inflation of 12.7% to an average £233,189.

The figures have been released by Principality Building Society's Wales House Price Index for Q2 2021 (April to June), which demonstrates the rise and fall in house prices in each of the 22 local authorities. 

Despite annual growth, all three local authorities in west Wales experienced a modest drop in quarterly growth, with Carmarthenshire dipping by 1.9%, Pembrokeshire by 2.2% and Ceredigion by 1.4%

House prices across Wales rose to a new average peak price of £215,810 in Q2 2021.

Despite annual house price inflation of 12.5% across Wales, there is some sign that the strong pace of increases seen around the turn of the year has begun to abate, with the quarterly rate of increase now down to 1.4%.

This is likely to be a result of the Land Transaction Tax (LTT) holiday coming to an end in June and could indicate price growth slowing in the second half of 2021.

Tom Denman, Chief Financial Officer at Principality Building Society, said: “The scale and strength of the housing market in Wales to date does suggest that this momentum will continue into the final quarters of the year.

"Clearly, the stimulus effect of the Land Transaction Tax holiday will have disappeared by then, and because some purchases were brought forward to capture that benefit, there will be an inevitable dip in activity.

“Alongside this, the furlough scheme ends in September, thus further revealing the underlying state of the economy and employment.

"Various forecasts suggest that Wales - along with other parts of the UK - will see house price inflation down to just under 5% in 2022 and onwards.

"Much will depend on the course of interest rates and the economy, but the mortgage market remains very competitive with rates having fallen in recent months after slightly increasing at the height of the pandemic.”

Principality’s House Price Index estimates that there were around 13,400 transactions in Q2 2021, nearly treble the Covid-depressed level of the same time the previous year (4,800 sales), but also significantly higher than the more “normal” period of Q2 2019 (11,000 sales).