Land Registry property figures analysed by Housesimple reveal that since the decision was announced in the summer of 2017, average sold house prices across the three Welsh local authorities closest to the Severn Bridge - Monmouthshire, Newport and Torfaen - have increased 13.2%. That’s over four times more than average prices have risen across the UK over the same period.
Monmouthshire and Newport, the closest local authorities to the Severn Bridge, are two of the fastest growing property markets in the UK, with price gains of 14.0% and 13.7% over the past 12 months. Torfaen, which is just 34 mins from the bridge, saw property prices boom 11.9% since August 2018.
Comparatively, average house prices in the three local authorities in England closest to the bridge, have gone up just 3.1% over the past 12 months.
For home buyers looking for value, the average price of a property in South-East Wales makes it an extremely attractive market. According to Housesimple.com research, average house prices across the 10 local authorities in the south east of Wales are £161,948 compared to £300,946 –almost 50% cheaper – across the three local authorities in England that are closest to the bridge.
Two Welsh local authorities, Blaenau Gwent and Merthyr Tydfil, both within an hour of the Severn Bridge, have some of the cheapest property prices in the UK. Average house prices in Blaenau Gwent and Merthyr Tydfil are £87,546 and £102,503 respectively.
While Bridgend stands out as the only local authority in the south east of Wales where average house prices have fallen since the Severn Bridge announcement, down 1.1% over the past 12 months.
Sam Mitchell, CEO of online estate agents HouseSimple.com, comments: “The toll was always a massive barrier to attracting businesses and commuters across the bridge into Wales. It was a gravy train for the government but a car crash for the local economy. Lifting the charge will lift a huge black cloud that has been hanging over the south east of Wales, which is set to benefit more than any other area.
The impact of the announcement back in the summer of 2017 was immediate, as local property markets saw a boost in demand. From December this year, there will be obvious economic benefits to businesses and commuters relocating to this area of Wales, and local housing markets have been stirred into life.
Newport is currently one of the UK’s most buoyant housing markets. Average prices are up almost 14 per cent and it’s not hard to see why. The average price of a property in Newport is £100,000 less than Bristol, its counterpart on the other side of the bridge. For the average wage earner in Bristol, property prices are already unaffordable; in Newport they are still within reach.
We are likely to see a rise in people relocating from England to Wales to take advantage of lower property prices, with the extra commuting time easily compensated by the savings they can make. Regional economies should feel the benefits, but there might also be little pain for local people. An influx of wealthier buyers from outside the area could well push property prices up to unattainable levels. The key for local councils will be ensuring that property markets in the future accommodate everyone, not just the wealthy few.”
