Property prices hit record high in Wales - but Land Transaction Tax change could help first time buyers

First-time buyers may be dismayed to hear that property prices in Wales soared to a record high in September this year– with significant double-digit price rises seen across 16 authorities.

All 22 areas across Wales experienced increases, with the average property now valued at £245,893 – an annual increase of 12.4% in average house prices.

The rising figures were revealed by the Principality Building Society’s Wales House Price Index.

The figures also showed that nine local authorities across Wales, including the Vale of Glamorgan, Rhondda Cynon Taf, and Ceredigion all saw record high increases of more than 15%.

This is great if you’re selling but not so great for first-time buyers who are also facing rising interest rates.

One positive for those ready to get onto the property ladder is the Welsh Government’s announcement last month of an increase in the threshold for paying Land Transaction Tax (known as Stamp Duty in England) for people buying homes in Wales.

Thanks to this, those purchasing a property valued under £225,000 will no longer pay tax, this is up from the previous threshold of £180,000.

This is also good news for our clients whose new homes are valued between £225,000 and £345,000, as properties in this price bracket will see a reduction in the Land Transaction Tax they will pay.

As experts in Residential Conveyancing, we recognise that buying a home is one of the biggest financial commitments you’ll make, and the costs associated with this can also mount up.

Emma Gilroy, Head of Residential Property, said: “We understand that everyone is currently concerned with rising costs, and for those looking to get onto the property ladder this is no different.

“People moving home have undoubtedly faced extra stress in recent times, but one thing they at least may not need to worry about is Land Transaction Tax.

“This recent decision by the Welsh Government removes the added costs our clients face at the end of the purchasing process and hopefully makes things just a little bit easier financially.

“As a firm, we recognise that buying a home can often be complex, however, we strive to make this process as smooth as possible for all parties involved.

“If you would like to discuss changes to Land Transaction Tax, or if you are considering buying a home and need expert advice from our team, please get in touch.”

The figures were published by the Principality Building Society in October, and relate to the period from July 1 to September 30.

To find out more about Land Transaction Tax in Wales and where higher rates may apply, such as if you own more than one property, visit: https://gov.wales/land-transaction-tax-guide

Click here for more information on JCP Solicitors’ Residential Conveyancing team or get in touch with our award-winning team on YourHomeMove@jcpsolicitors.co.uk or call 03333 208644.