Estate agents in Wales have reported that buyer demand is significantly pushing up the price of canal-side properties.

Following on from the successful regeneration of Cardiff Bay and Swansea Bay, which both included residential apartments, the waterways of rural Wales is now the next big thing in the property market, experts have claimed.

Ron Kaiser, an estate manager for British Waterways, told the Western Daily Press that homes on a canal are subject to increase attention from buyers and often sell for 15 to 20 per cent more than similar properties away from the water.

Commenting on the type of buyer being attracted to the market, James Evans, director of Halls Estate Agents in Welshpool, told the newspaper: "They tend to be practical people who are comfortably off and are prepared to do some work to improve their property.

"It is these type of people who appreciate the benefits of living by the water, who are pushing the prices up."

Cath Rees of Clee Tompkinson & Francis, Brecon, added: "Canalside properties don't come on our books very often but when they do, ones with views of the Brecon Beacons are the best sellers."