Wales sees 3% annual house price rise as investors consider alternative markets

WELSH house prices have risen by 3.0% year-on-year, bringing the average property price to £208,197, according to the latest UK House Price Index Summary: December 2024. While this growth signals confidence in the market, it also presents challenges for investors looking to maintain strong rental yields and affordability.

Wales’ property market in 2024

Some regions in Wales have seen significant increases in house prices over the past year, including:

• Blaenau Gwent (+9.2%) – One of the fastest-growing areas in Wales.
• Rhondda Cynon Taf (+8.9%) – Strong demand pushing prices higher.
• Bridgend (+7.4%) & Cardiff (+5.6%) – Popular locations maintaining steady increases.

While homeowners may welcome this growth, rising property prices are making it increasingly difficult for buy-to-let investors to secure strong returns. Higher purchase prices, particularly in urban centres, are placing pressure on rental yields.

Rental yields under pressure

As house prices rise, rental yields—a key consideration for property investors—are becoming tighter. Cities such as Cardiff and Swansea remain popular for investment, but profitability is being impacted by higher initial purchase costs.

In contrast, Northern Ireland has emerged as the UK’s fastest-growing property market, with house prices increasing 9.0% year-on-year, outpacing Wales (3.0%), England (4.3%), and Scotland (6.9%).

Northern Ireland has also maintained some of the strongest rental yields in the UK. For example, Belfast boasts a 6.1% rental yield, with some areas offering even higher returns. This compares favourably to many parts of Wales, where increasing property prices are limiting rental income growth.

How other home nations are faring

Across the UK, property markets are experiencing varied growth rates:

• Northern Ireland – The fastest-growing market, with prices surging 9.0% to an average of £183,259.
• Scotland – House prices have risen by 5.6%, bringing the average property price to £191,300.
• England – A modest 2.5% increase has brought the average property price to £304,000, with the North West and Midlands outperforming London and the South East.

Brexit’s ongoing influence on UK property investment

Five years after Brexit, its long-term effects continue to shape the UK property market. Wales’ economic ties to both the UK and Europe mean investors must consider how cross-border relationships and market confidence will evolve.

Notably, Northern Ireland’s property sector has remained resilient despite initial concerns over the impact of the Northern Ireland Protocol. The region’s position as a gateway between the UK and the EU has helped sustain investment interest and property price growth.

What this means for Welsh investors

With house prices in Wales rising and rental yields under pressure, investors may need to diversify their portfolios to maintain strong returns. The report suggests that Northern Ireland offers an attractive alternative due to its high rental yields and competitive property prices.

Find out more with the John Minnis Property Investment Guide

The John Minnis Investment Guide 2025 provides an in-depth analysis of:

• UK house price trends
• Rental yield comparisons
• The ongoing impact of Brexit on property markets
• A real-life case study of an investor successfully diversifying their portfolio

HOMEOWNERS across Milford Haven, Haverfordwest, Pembroke Dock, and Pembroke can now benefit from expert roofing and UPVC services, thanks to the launch of LS Home Improvements, a new business owned by Lewis Sykes.

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A WELSH food wholesaler, which has base in Carmarthen, is launching a raft of measures including an innovative new rewards app to help customers cope with the cost of living crisis.

Harlech Foodservice says many businesses have been dealt a “real body blow” by controversial Budget measures, including the increase in employers’ National Insurance contributions.

There have already been warnings of hotels, pubs and cafes struggling to cope with the extra staff costs and experts predict that some care homes will be forced to close.

The My Harlech loyalty app will be unveiled at Harlech’s annual two-day  trade fair Expo 25, that’s being held at Venue Cymru in Llandudno on Wednesday and Thursday, March 12 and 13.

According to Harlech, which has bases in Cricieth in Gwynedd, Chester, Carmarthen, Merthyr Tydfil and Telford, the app rewards customers with a rebate of up to 10% on what they spend with them each year.

They’ll qualify for a further 5% rebate for the additional spend with Harlech compared to the previous year.

David Cattrall,  the Managing Director of Harlech, said: “With all the challenges the hospitality, care and education sectors are facing in 2025 we have doubled down on how Harlech can help save money for our customers.

“Whilst some foodservice companies are increasing prices for customers, we have improved our efficiency and driven down our prices.

“It’s our way of giving something back to our loyal customers and doing our best to  them navigate a very difficult economic climate.”

Harlech has announced it’s launching its latest version of its Trust Our Prices campaign, with more than 300 prices locked down for three months until June 7.

There’s also a return for its Mega Deals initiative with what it describes as  “massive discounts” on popular brands and own branded products.

Meanwhile, the company is introducing the Harlech Top 50 price comparison scheme, with the prices of 50 of the most popular lines being benchmarked against the giant Booker company and published on the website every Tuesday.

Mr Cattrall said: “We have very deliberately  gone about disrupting the way foodservice companies have operated in the past.

“For far too long there has been a common practice of announcing inflated prices and then going through a ritualistic charade to ‘negotiate the prices down’.

“That’s why we launched our hugely popular Trust Our Prices strategy because we are conscious that many of our customers are trading in an extremely difficult environment.

“Times are tough. After the nightmare of Covid, the Budget measures which come into force in April are a real body blow.

“The 1.2 per cent rise in Employer National Insurance contributions and a cut to the Secondary Threshold to £5,000 will add significant extra costs in terms of staff.

“What we’re trying to do with the My Harlech app and the other cost-saving initiatives is to ease the financial burden for our customers in hospitality, social care and education to help them ride the economic storm.

“We also want to make life a lot simpler for them with very  competitive, transparent pricing – no hassle, no haggle – backed up by excellent customer service.”

A record number of 120 suppliers will be showcasing their products at Expo 25 where sales are expected to top £1 million.

Among those with a presence for the first time will be two of the global giants of the food and drink businesses, Coca-Cola and Mars, who have each taken stands at the event.

Also there will be two of Harlech’s newest partners, both with an Italian flavour, Sidoli’s ice-cream, set up in Ebbw Vale over 100 years ago by Benedetto Sidoli and still in the same family, and Ferrari Coffee from Bridgend, which was founded by Vittorio Ferrari in 1927.

They will join a host of other household names at the event which will see Harlech, which has bases in Cricieth, Chester, Carmarthen, Merthyr Tydfil and Telford, unveil its latest Trust Our Prices range with over 300 deals for its customers pegging prices for the next three months.

Alongside Coca-Cola and Mars at the trade fair will be a host of food and drink supply giants including Pepsi, Kellogg’s, Young’s Seafood, Premier Foods, Cadbury’s, Twinings tea, Walkers crisps and Unilever.

Nationally known Welsh brands such as Jones Village Bakery, Edwards the Welsh Butcher, Llaeth y Llan Village Dairy and Radnor Springs, from Knighton, in Mid Wales, will also all be there.

Caption

David Cattrall, Managing Director of Harlech Foodservice