House Price Index data from Principality Building Society for Quarter 4 of 2024 shows a 12.4% decrease in average house prices in Gwynedd, far above the Welsh average of -0.4%. A typical semi-detached home in the county is now £209,374, compared with £264,193 in Q4 of 2023.
This is an alarming change for existing homeowners, but, with the average salary in Wales at £34,303, it still leaves many people priced out.
Prevention would have been better than cure
Propertymark has frequently highlighted the huge growth in the short-term lets sector and raised concerns about the impact on housing affordability and supply for private rent and owner-occupation.
We have lobbied government and local authorities to carefully consider the impact policies that may incentivise landlords to start using their properties for short-term lets and called for a level regulatory and tax playing field between short-term and long-term lets. Furthermore, we have long recommended introducing limits on short-term letting activities in areas there was a demonstrable impact on the housing supply.
A need for urgent action
The housing situation in Gwynedd has previously been described as ‘critical’, with over 65% of the local population priced out of the housing market across the whole area. This became even more pronounced in highly desirable areas such as the Llŷn Peninsula, where the median house price rose above £400,000, making it unaffordable for 96% of local people.
The local authority has expressed its determination to secure the future of communities and ensure local people can access suitable and affordable housing in the area.
Setting a benchmark for balance
In large parts of the county, a significant proportion of the housing stock is currently used for second homes and holiday accommodation, with some areas reaching almost 50%.
Cyngor Gwynedd has set a threshold of 15% to indicate when there is an oversupply of holiday accommodation in an area, meaning there is no capacity for more and planning permission is unlikely to be given. It believes that this is the tipping point at which any benefit from tourism is overtaken by the detrimental effects. It is intended that over time this policy, along with a restriction that any new houses must be main residences, will help to reverse the imbalance in the local housing market.
Representing members
Propertymark will continue to monitor the implementation of the Direction in Gwynedd and will communicate with members in and around the area to assess the impact on the wider sector.
To input your views, contact the Policy and Campaigns Team at [email protected].
