How South Wales is bucking the existing property sales trend
New builds, new builds, new builds. They always seem to be making the headlines, although whether they’re portrayed as good or bad is another conversation entirely.
We need new houses on this little island of ours without doubt. The growing population must have somewhere hygienic to live with a reasonable commute time to the workplace.
For this reason, new builds make up a reasonable percentage of homes sold, although having said that, it’s still way behind the pre-owned market.
South Wales doesn’t follow this trend. In this article, I’m exploring why that’s the case and what it means for you.
What is the UK housing market trend right now?
New builds are currently extremely popular in the UK. Many of them are bought or spoken for long before construction even completes.
This trend predominantly applies to the Midlands, East of England, and the North. Nevertheless, homes are springing up everywhere, and at an astonishing rate.
There are several potential reasons for this. The most likely is a new build’s (theoretically) reduced running costs. Sadly, that isn’t always true, particularly with the now-more-popular heat pumps.
People might also be looking for more security in their purchase, which can often be found with a new home. If problems are found later, it’s easier to contact the developer and complain. That doesn’t mean the said problem will be solved, though.
We aren’t seeing the same demand for new homes in South Wales. This also applies to a select few other regions, including the rest of Wales, the South West, and London.
In South Wales, pre-owned homes are selling faster
Why are pre-owned homes selling faster than new builds in South Wales? I have a few thoughts on that.
- South Wales is a highly desirable area, especially areas like Oxwich and Shirenewton. Planning laws are often very restrictive to maintain the beauty and appeal of these areas. This makes new builds rarer and simultaneously drives up the demand and value for the existing properties.
- This same desirability means that homes tend to sell very quickly. Anyone thinking about buying in most areas of South Wales won’t have to worry about reselling or resale value. This makes them more popular; the market is already proven.
- There are simply fewer new builds in South Wales. Cardiff and Swansea account for two of the five areas with the lowest percentage of new homes sold. I’ll go into a little more detail on this below.
Why are pre-owned homes in South Wales so popular?
South Wales is bucking the UK’s shift towards new builds (even though pre-owned still makes up the vast majority of the market). But why? What makes pre-owned homes so popular in South Wales?
Perhaps it’s the history. People moving to this region often look for a quaint cottage or a home in a peaceful market town. These, by definition, usually aren’t new builds.
Size and floor space could also play a part. Older homes, particularly those from before the 80s, tend to be rather large. The fast-growing market in South Wales might offer affordable ways for individuals and families to expand in an economically-sound way.
Finally, it could be as simple as the upfront cost. New houses are more expensive. If someone feels they’ll get more home for their money with something else, that’s what they’ll choose.
Whatever the reason, South Wales is a beautiful place. I suspect this plays a significant role in maintaining the property values of older homes.
What can GB Home Surveys do for you?
I work for GB Home Surveys, a company covering the South West and West of England as well as (of course) South Wales. My job is to inspect homes that you, a potential buyer, have submitted an initial offer on.
After you contact me and we arrange a date, I’ll head to the property. I’ll have a detailed look at all the rooms, walls, ceilings, windows and loft. From the outside, I’ll also check the grounds, garden, driveway, paths and patios, and the exterior brickwork and roofing tiles.
Whatever I find – be it positive or negative – I’ll note it down and then produce a PDF report for you. I’ll have it back to you within seven working days. You can use this (along with any further questions you might have for me) to get a general overview of the property’s condition and check you’re paying an appropriate sum.
Could a South Wales home survey help you? Most certainly, so please don’t hesitate to get in touch with me through the contact form below. Alternatively, you can contact my team and me directly by following this link.
I look forward to hearing from you and helping you on your journey towards (or within) South Wales.
Felicity Thomas, AssocRICS
