The property market is South Wales has been booming since the Brexit referendum and this looks set to continue into 2020 and beyond. Land Registry figure showed house prices in Wales rose more than anywhere else in the UK in the year to January 2019 and these rises have continued unabated throughout this year.
In West Wales, the market in 2019 has been red hot with investors purchasing portfolios of buy to holiday let properties to satisfy the boom in staycationing; ex-pats moving back from overseas and more and more people relocating to the country for a better quality of life and to escape the rising crime in the cities; as well as people retiring and moving to the coast.
Prices for sea view properties have soared but are still good value compared with those in places like Cornwall or Suffolk and people are recognising that Pembrokeshire and Ceredigion have everything the West Country has to offer but without the crowds and are actually easier to access from London or the Midlands than Cornwall. For example a 7 bed front line sea view property in Newquay is on the market for £2,500,000 whilst the equivalent in Pembrokeshire would be nearer £1,500,000 – here in Pembrokeshire you would get an 11 bedroom house with its own beach and 26 acres for £2.5m.
There has been an increase in young people and families moving here from London and the South East to set up small businesses such as craft gin and specialist food production, herbalists, design companies, clothing companies, etc. which employ local people and this younger generation are all keen on reducing food miles, buying locally and supporting their local communities, so are a real asset to the area. There are also an increasing number of people who have connections to the area, but who are working away, buying coastal properties to not only use as second homes and buy to holiday lets in the short term, but to move to permanently once they retire in a few years’ time. This is ideal as it brings visitors to the area who spend a good deal of money in local shops and with companies providing services for holiday makers, but as the owners will then move there full time, it prevents the problems seen in many holiday areas like Cornwall where coastal villages are deserted out of season.
The spread of Superfast Broadband and the advent of 5G is encouraging this as well as allowing more people to work remotely and perhaps just commute to offices in London, Bristol or Swindon once a week. The full electrification of the train line from Paddington to Cardiff in 2020 will cut the journey time and this again will encourage more people to move to South Wales.
The removal of the tolls on the Severn Bridge also provided a huge boost for the property markets around Newport and Cardiff, encouraging people to buy there and commute to over the bridge and again the increase in buyers in those areas looks set to continue. If the Welsh Labour Government finally gets its act together and builds the M4 Newport Relief Road which has been in the offing for some years, this again will boost the market in Cardiff and further west to Swansea and beyond.
Farms and land prices in South Wales have also held up well despite the uncertainty over Brexit and once out of the EU good agricultural land and farms will see a price boost. After the election and Brexit, if the Conservative Government implements its proposed plans to make ports like Milford Haven into free ports this again will boost property prices in Pembrokeshire enormously.
We predict a further solid 5% increase in overall property prices in South Wales in 2020 with sea view properties rising 10% and this steady rise continuing with an uplift once Brexit is achieved and things settle down. However, should Corbyn win the election, property prices will plummet without a doubt due to Labour’s proposed land and garden taxes, inheritance taxes, etc.