Wales has seen the biggest house price increases in the UK over the past 12 months, making property increasingly unaffordable for first-time buyers.
Swansea has done particularly well, with 55% property price growth between April 2003 and April 2004, based on Halifax figures. A former council house in Swansea sold for a record £260,000 at the end of May, believed to be the highest price ever paid for an ex-council house in Wales.
The Cardiff market, where the boom began, also remains strong. Garth White, principal at Friendly Independent Mortgages, says: ” A penthouse flat recently sold off-plan for £460,000 and is rumoured to be going straight back on to the market as the first £1m flat in the country.”
He adds: “People keep asking when it will all end and realistically it must, but I don't expect a crash.”