FISCUS MORTGAGES - INFORMATION AND ADVICE

House prices have doubled in five years

26-Aug-2004

by Aled Blake, The Western Mail

House prices in Wales have risen by more than 100% in the last five years, figures reveal today. Cardiff has seen a 123% rise in the average house price since 1999, say Halifax Estate Agents. The old county of South Glamorgan has seen a rise of 110% over the same period, while house prices in North Wales have gone up by 145.41%.

Only prices in Gwent have risen at a rate below 100%, with Halifax reporting an increase of 96%. Kelvin Francis, Cardiff estate agent and spokesman for the Royal Institute of Chartered Surveyors, attributed some of the rise in the Welsh capital to its university status.

He said, It has been popular for years for parents to get involved in buying properties while their children are at university.

It has been made easier with buy-to-let mortgages because they can be treated separately and you don't need a lot of capital for them. Mortgage lenders are prepared to lend on a competitive basis and it's bought as an investment.

Very often they sub-let to other students the remainder of the house. They can then resell if necessary.

Some owners are buying the property in the child's name so when it's sold there is no question of capital gains tax.

It has increased demand in areas of the city such as Cathays and Roath, which are close to the university.

In multiple properties, there are relatively high rents because they are rented out by each room.