House prices in Wales are still rising

The latest figures from the Principality Building Society show that the average house in Wales costs �87,238, up 19.6% since March 2002.

But prices in Wales are rising more slowly than elsewhere in the UK.

Another survey by the Nationwide Building Society says that house prices across the UK as whole rose by 26%.

According to the Principality, the biggest Welsh increase was in Cardiff, where prices rose by 22.2%, bringing the average price in the city to almost �119,000.

In Newport, prices went up 15.6% to �83,967, in Swansea 16.8% to �79,807, in Wrexham 13.3% to �79,221 and in Bangor 12.2% to �71,638.

HOUSE PRICE INCREASES All-Wales: From �72,963 to �87,238 (+19.6%) South East Wales: From �79,550 to �96,354 (+21.1%) Mid Wales: From �76,227 to �89,613 (+17.6%) North Wales: From �68,458 to �78,797 (+15.1%) West Wales: From �63,495 to �74,019 (16.6%)

But home owners are being warned not to expect similar increases this year with a slow-down in the housing market predicted.

Principality Chief Executive Peter Griffiths said: "Our statistics indicate that house prices will rise by double-digit figures over the course of 2003.

"However, a number of factors are all likely to affect the housing market in Wales this year, including the slow-down in the national housing boom, rises in interest rates and the impact of increased employee National Insurance contributions.

"I would sound a note of caution to house owners across Wales that they should not necessarily expect the same level of increase in house prices for the rest of 2003."

Mick Maguire, Director for Business Development at the Principality, told BBC Radio Wales: "(The figures) reflect houses sold in the first quarter of this year, the reality is that sales in the next quarter are slowing down.

Cost

"In the last three to four years we have seen house price increases in double digit figures.

"The cost for first-time buyers has become very difficult and we need a slow-down so first-time buyers can get a foot on the ladder."

Dafydd Hardy, Co-Director of Dafydd Hardy Estate Agents, which has eight branches across North West Wales, added: "For houses up to �100,000 there is still demand, but in the higher prices, there is a slow-down.

"It is going to become a more normal market in the next 12 months .

"I think people need to look at what is happening in the market and they don't want to overstretch themselves."