House prices continue to rise in East Anglia
Nationwide building society has released its latest House Price Index Report for the first quarter of 2016, and local home-owners may be pleased to see that house prices continue to grow across the South. For clarity, the survey classifies the South as London, South East England, South West England and East Anglia.
The biggest annual percentage change this quarter was seen in the London commuter belt at +12.2%, taking the average house value in this area up to £344,000, followed by London (+11.5%), the South East (+8.3%) and East Anglia (+5.8%).
Other key points the report made include:
The average UK house price has reached an all time high
The average house price in the UK is now over £200,000 for the first time (£200,251), up 5.7% from this time last year
The North-South divide is widening
The average house price in the South has now broken the £300,000 barrier at £313,670, double that of the North at £150,917.
East Anglia saw the 4th largest increase in house prices year on year
Outside London and the commuter belt, house prices in the South East are growing the fastest year on year, followed by East Anglia.
The volume of properties for sale is at its lowest level in 30 years.
Mortgage approvals increased in the first quarter of 2016
The number of transactions and mortgage approvals have risen strongly over recent months, temporarily fuelled by buyers who either wanted to invest in a buy-to-let property or a holiday home before the 3% stamp duty surcharge commenced on 1st April.
With a limited number of available properties for sale (low supply), this strong demand has caused the average annual house price in the UK to increase out of the usual percentage range of 3%-5%, at 5.7%. Other factors include a growing population and an influx of wealthy foreign investors.
Alan Williams, Fenn Wright’s managing partner commented: “March saw the strongest price growth since February 2015, paving the way for a promising outlook for the rest of 2016, although I do expect that pace to slow down again, now that the stamp duty April deadline has passed. However, with strong employment growth, rising incomes, low interest rates, and estate agents reporting the lowest volume of stock available for sale in 30 years, demand should be steady for the rest of the year.”
For advice about buying and selling in your local area please get in touch with your local Fenn Wright branch.
If you are interested in premium town and country properties worth more than £500,000, the Fenn Wright Signature teams will be able to help you best.