According to the latest figures released by Pricipality Building Society, the lockdown of the Welsh property market as a result of the coronavirus pandemic has reduced transactions in Wales by 66%.
The Welsh government made the decision to deviate from the English government’s opening of their property market in May in a bid to curb the transmission of the virus.
Opening the Welsh market later and taking a cautious approach in regards to the Land Transaction Tax cut is thought to account for some of the impact on transactions.
Mike Jones, interim CEO at Principality Building Society, said:
“We remain cautious about how we interpret average house price data for Q2 because sales are down by more than 60 per cent compared with the same period in 2019.
“The temporary increase in the Land Transaction Tax to help first-time buyers in particular, is likely to stimulate the market in the short-term, along with increased levels of activity following the easing of lockdown restrictions.
“However, once the UK Government furlough schemes come to an end in October, there may well be a rise in job losses and this, in turn, is likely to have a negative impact on consumer confidence in general.
“If this happens, then we would expect to see lower levels of activity in the housing market across the UK, and not just Wales.”
