Biggest Rise in Property Prices for 10 Years; HOUSING MARKET: Low Interest Rates and Consumer Confidence Fuelling Boom
Byline: SION BARRY
SUSTAINED interest rate cuts in 2001 helped to fuel the biggest hike in house prices in Wales for a decade, according to figures published yesterday by the Principality Building Society.
According to the Cardiff-based mortgage lender house prices in Wales increased by 9.8pc last year, representing the fastest rate of growth for house prices recorded by the Principality in the past 10 years.
Principality chief executive John Mitchell said lower interest rates helped to boost consumer confidence in the housing market.
Mr Mitchell said, "2001 was a busy year for property transactions right across Wales and this has helped the society enjoy record mortgage lending, up nearly 30pc on 2000.
"The busy market has buoyed up house prices particularly in south-east Wales."
Mr Mitchell said the company's estate agency arm Peter Alan also experienced a successful year.
He added, "Peter Alan has been able to identify property 'hot spots' in areas such as Caerleon and Canton, Cardiff, where house prices in some streets have risen by as much as 25pc in the year.
"Further evidence of strong housing demand was seen in the first-time-buyer market in areas like Grangetown, Cardiff, and Brynhyfryd, Swansea, where houses are selling very quickly. …