Posted: Tuesday, May 19, 2026

Regional Property Market Update Summer 2026: Wales

Housing market activity is proving resilient as war in the Middle East continues for longer than originally anticipated. Committed buyers and sellers are pressing ahead, helping demand hold firm in the face of elevated borrowing costs.

 

Uncertain outlook

The Middle East conflict has lasted longer than anticipated, continuing to weigh on global markets and the broader economic outlook. Against this backdrop, the Bank of England held interest rates steady at 3.75% at its April meeting, with future markets currently pricing in a single rate hike across 2026. The Bank of England decision came as headline inflation rose to 3.3% in March, driven largely by higher energy costs¹. However, underlying inflation came in below expectations at 3.1%, strengthening the Bank of England’s case to hold rates steady in the near term.

 

Buyer demand

Buyer sentiment, while slightly softer, remains resilient in the face of higher mortgage rates due to global uncertainty. Buyer enquiries are down 2% on last year, though have rebounded since Easter, and are now running at their highest level since the outbreak of the conflict in late February². Mortgage approvals in March rose to 63,531, their highest level in four months, and are sitting just 0.8% below the same time last year³. Movers are taking a measured approach as they assess pricing, wider economic signals and an uncertain longer-term picture.

 

 

Time on market

The average time to sell a property currently stands at 32 days in March, down from 39 days in February and lower than 36 days a year ago⁴, an encouraging sign that people who need to move are still moving forward. Regional variations persist, higher-priced areas tend to move slower while more affordable regions are seeing homes change hands more swiftly. Scotland leads as the quickest market at just 20 days, followed by the North East at 23 days. As price sensitivity becomes increasingly evident, understanding local dynamics and setting a realistic price is key to achieving a timely sale.

¹ONS, ²Zoopla, ³Bank of England, ⁴PriceHubble, England and Wales, using InformationWorks data, March 2026

 

Rental market dynamics

With the Renters' Rights Act now in effect from 1 May, the rental market continues to hold steady. Following a rise in March, average rents increased again in April, with annual growth now at 2.1% and rents higher than a year ago across every UK region. Available rentals are at their highest for this time of year since 2021, while demand stays above pre-pandemic levels¹. From May, offering above asking rent will be banned. Over the past five years, roughly one in ten tenancies have been agreed above asking price². Landlords, unable to accept higher bids, are likely to respond by setting slightly higher upfront asking rents.

Source: ¹Dataloft by PriceHubble, HomeLet, Rightmove, ²PriceHubble

 

Holding steady

Despite uncertainty and elevated mortgage rates, resilience continues, with needs-based movers continuing to transact, supporting overall stability. Transactions rose by 1% in March to 104,070, from 102,750 in February, however figures were 41% lower than the same period last year, largely reflecting the exceptionally high transaction levels seen in March 2025 ahead of stamp duty threshold changes in April 2025¹. The number of sales agreed in April held up, running just 3% behind last year'’s market². New instructions are similarly steady, with homes coming to market only marginally behind last year at 1%, and 13% higher than in 2024. Across Wales, the most active housing markets are currently those of Newport, Vale of Glamorgan and Conwy, where close to one in every 27 properties has changed hands in the past year. Looking ahead, sales volumes are expected to remain broadly flat. The latest RICS survey recorded a net balance of -1% of respondents anticipating an increase in sales over the year ahead.

¹HMRC, ²Rightmove

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