Nation.Cymru staff
The average house price in Wales has risen as housing market activity has picked up.
The average price of a home in Wales reached £258,000 in Q2 2026, up 0.6% on the previous quarter and 4.0% on the same period last year.
The figures have been released by Principality Building Society as part of its Wales House Price Index for the half-year 2026 (January-June), which tracks house price movements across Wales.
Principality Building Society’s analysis of CACI data shows that average purchase prices increased in 17 of Wales’ 22 local authorities compared with the same period last year, although the pace of growth varied significantly across the country. Four local authorities recorded annual price declines, with Ceredigion (-9.3%) seeing the largest fall, followed by Swansea (-4.1%), Merthyr Tydfil (-1.4%) and the Vale of Glamorgan (-0.9%).
Anglesey recorded the strongest annual growth at 22.2%, followed by Wrexham at 16.0%, Caerphilly at 14.7%, Pembrokeshire at 11.5% and Monmouthshire at 9.4%, highlighting particularly strong price growth in parts of North Wales alongside gains in markets across Wales.
Monmouthshire remains Wales’ most expensive local authority, with an average purchase price of £387,606, followed by the Vale of Glamorgan (£307,905) and Cardiff (£303,323).
At the other end of the scale, Blaenau Gwent was the most affordable at £167,239, followed by Merthyr Tydfil (£184,769) and Neath Port Talbot (£192,418). The average purchase price in Wales’ most expensive local authority was more than twice that of Wales’ most affordable, a difference of over £220,000.
Andy Mottram, Head of Lending Product for Principality Building Society, said: “The latest figures point to a more resilient Welsh housing market in the second quarter of 2026, with mortgage activity among both first-time buyers and home movers increasing following a weaker start to the year.
“While the picture varies across Wales, we are observing strong price growth in many areas, particularly parts of North Wales such as Anglesey and Wrexham.
“We’re also seeing some interesting differences between buyer groups, with first-time buyers contributing to stronger transaction volumes and home movers driving growth in lending value and average purchase prices.
“While the pace of growth varies significantly between areas, the figures show that the market is becoming more active across Wales, although affordability remains a significant challenge for many households.”
Affordability pressures remain particularly pronounced in some of Wales’ highest-value markets. For first-time buyers, average purchase prices were equivalent to 4.5 times the average household income in Cardiff and 4.6 times in Monmouthshire, compared with 3.7 times in Blaenau Gwent. The affordability challenge was more pronounced for home movers, with purchase prices equivalent to 7.6 times income in Cardiff and 7.3 times in Monmouthshire, compared with 5.2 times in Blaenau Gwent.
The findings are reflected in Members’ perceptions of the housing market, with half (50%) of Principality Members surveyed saying buying a home in their local area has become less affordable over the past year. Just 17% said they were confident that a first-time buyer on an average income could afford to buy a home locally.
Andy adds: “As a business, we remain focused on opening more doors for our customers, helping to remove the barriers that people can face when looking to buy a home and working with our partners to support communities across Wales.
“Looking ahead, we expect the market to remain resilient through the second half of the year, although continued inflation and ongoing cost-of-living pressures could weigh on household affordability and the pace of activity.”
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