Wales’ Bridgend area, like more than a few parts of the United Kingdom, has experienced rising and falling periods of the past decades as the property market has heated up and cooled down with recurring regularity. But where will the market be in 2025 and beyond? Many homeowners and soon-to-be-buyers – or even investors – will need to peer into that distant future to see what house prices in Bridgend may hold. With many economic factors in play, it’s important for us to take a look at what the experts are saying and what may be affecting local trends. The property experts from LandlordBuyer take a look at Bridgend house prices and whether or not the market might grow, stabilise, or trail off into decline.
Current Market Overview
Bridgend was always a good place to set down roots in south Wales – a convenient commute distance from the two largest cities in the Valley (Cardiff and Swansea), with plenty of reasonably priced housing on offer, and the trappings of countryside which many had left behind everywhere they looked. Local government statistics made available through the Brecon Beacons National Park Authority, Bridgend Local and other local authorities show house prices in this town have been rising for at least a decade. Recent months have seen a tepid dip in property values, but it is worth noting that the cooling off has occurred across the country as a result of the state of the economy.
Recent Trends
Steady Demand: The ever-changing economic landscape of the town has done little to dampen demand for properties in Bridgend, which remain in demand with their combination of amenities, schools and transport links to Cardiff and Swansea attracting a healthy mix of buyers.
Lower price elasticity: Because it is relatively cheap compared with nearby cities, it has insulated Bridgend somewhat from the more dramatic volatility that we’ve seen in these markets – this is a factor that has kept demand strong and is keeping house prices buoyant.
Expert Forecasts for 2024
Reasons for Optimism
Below is an instruction that describes a task, paired with an input that provides further context. Write a response that appropriately completes the request. Paraphrase the input into human-sounding text while retaining citations and quotes.Bridgend did not register a lot of discounted prices? Well, some market experts convinced The Daily Coast readers in an online piece this summer that there was no reason for Bridgend homeowners to ‘worry unduly’ and that house price crashes were not imminent. They pointed to the town’s good fundamentals and wider trends that suggested house prices were set to see further growth over the course of the year.
Persistent Demand: Demand is likely to remain constant over the years ahead, as Bridgend is located at the centre of a complex transport network and suburban living is likely to remain popular over the years ahead.Remote working seems to be more entrenched post-pandemic and people are looking to move away from the city and into towns such as Bridgend.
Economic stability: The UK economy is fragile, but the local economy of Bridgend, with its large catering and manufacturing industries, is holding up well. Property prices remain stable and the housing market shows good prospects.
Infrastructure Investments: The roads and railway links into the town are being improved currently and will contribute to making Bridgend an even more attractive prospect for commuters.
Potential Risks
Although the prediction is positive overall, risks to Bridgend house prices in 2024 could be:
Interest Rate Hikes: Rising borrowing costs might bite if they make homes an arduous purchase. Squeezed real wages may spell reduced spending power at a time when prices begin rising.
Economic Uncertainties: Broader economic issues (like inflation and potential slower economic growth, or ‘recessions’) could create headwinds, but Bridgend’s affordability and demand should also cushion the blow against worst case scenarios.
Housing Supply: is it possible to increase housing supply quickly? It is possible to build more houses quickly but what has been happening with UK housing planning permissions, on average, over recent years is that permissions are being granted gradually, at least slowly enough that house prices shouldn’t ‘collapse’ because of an increase in supply.
Long-Term Outlook
For Bridgend, the investment we foresee beyond 2024 informs the long-term outlook for the housing market. The town’s road and rail connections to Wales’ capital city and Westminster are unparalleled. Therefore, despite the challenges we have highlighted here, it is difficult for us to envisage a time in the not-too distant future in which Bridgend lacks the same attraction. At the very least, developments in the area should sustain house prices in the medium-term. Mr Economic Forecaster agrees that given the increased transition to remote working and the concomitant demand for a better work-life balance, Bridgend’s appeal will only increase exponentially.
As in previous years, we believe Bridgend’s housing market is a safe place to be. Home-prices’ growth should continue at a modest pace or, at worst, remain unchanged as in 2020. Our prospector’s forecast on Bridgend’s home-price trend remains unchanged. Despite some risks stemming from heavy reliance on one industrial sector, namely semiconductor manufacturing, as our article Risk Analysis to Bridgend’s Real Estate Market (2019) explains, we can be confident that the buoyancy in demand will pave the way for a healthy period of economic growth in Bridgend over the next few years. Indeed, with a wide range of fundamental economic indicators suggesting steady market development, in line with the national position, many real estate investors are once again turning their attention to the challenging yet rewarding prospects that Bridgend offers.
For homeowners in Bridgend, property-buyers and investors in the South Wales property market, the year 2024 is all about this exciting opportunity.
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