House prices in Gwynedd plummeted following new rules on holiday homes. Prices fell 12.4% in a year, impacting homeowners.
Gwynedd now has specific rules about pricing. House prices also fell elsewhere in North Wales during 2024, however, some areas show signs of market recovery. Two counties saw gains, possibly due to a “Hollywood factor.”
Some Gwynedd residents complain about falling property values. This happened after the local council acted last September, restricting converting homes to second homes. The council taxes second homes at 150%, plus a higher letting threshold also hurt prices.
One homeowner said her house lost £30,000 in value due to the new rules. She received a valuation from an estate agent and said she wished she had never moved back.
Some high-value houses reportedly fell by £100,000. One person said their home lost 20% of its value after the new rules were announced. Checking online left them disheartened.
Cyngor Gwynedd aims to help locals find housing, saying pricing controls were needed. Two-thirds of residents could not afford homes, especially in areas with many holiday homes.
A man in Morfa Nefyn cut his asking price by £40,000. His second home has been for sale since April 2024, but there’s been little interest, despite the price drop.
The couple has owned the house for twenty years. He blames the council’s actions for market problems, thinking other properties for sale are affecting him. Many families feel they can no longer continue living there.
Gwynedd’s slump was the biggest in Wales. Detached and semi-detached homes were more unstable in comparison to terraced homes during 2024.
The average Welsh house price stayed flat in 2024, ending the year at £233,194. Prices fell in Denbighshire, Flintshire, and Anglesey. Conwy rose 3%, and Wrexham rose 5.6%.
Conwy’s rise was mostly at the end of the year. Flintshire also saw gains recently. Anglesey rose 7.8% late in the year, similar to Carmarthenshire’s 8% rise.
Principality believes this may show a recovery. Prices are still 6% below their 2022 peak, but they expect prices to rise in 2025, as interest rates recently fell slightly.
Here’s a summary of price changes in 2024: Anglesey fell -0.1%, Ceredigion fell -3.8%, Conwy rose +3%, Denbighshire fell -1%, Flintshire fell -3.5%, Gwynedd fell -12.4%, Powys rose +2.4%, and Wrexham rose +5.6%.
Here’s a summary of price changes in the last quarter of 2024: Anglesey rose +7.8%, Ceredigion fell -2.8%, Conwy rose +2.9%, Denbighshire fell -1.8%, Flintshire rose +3.3%, Gwynedd fell -2.8%, Powys fell -4.1%, and Wrexham rose +0.1%.
Cyngor Gwynedd wants to improve housing and has many people on a social housing register. Tackling the housing shortage is very important. They aim to provide more affordable homes for locals.
The council tax premium helps fund this, supporting new homes and helping people facing homelessness. Grants and loans also help locals secure housing, which helps people stay in their communities.
Before enacting Article 4, research showed 65% of residents could not afford homes. This was worse in areas with lots of holiday homes. This is why Cyngor Gwynedd introduced Article 4, to control housing and meet local needs.
Since September 1, 2024, rules require permission to convert homes to short-term lets. The council is watching how this affects the market.