Region’s house prices soar by almost 10pc in a year
07-17-2015
Picture: Rui Vieira/PA Wire
House prices have risen faster in the East of England than anywhere else in the country during the last year, according to new statistics.
The average cost of a home increased almost twice as much in this region as in London – traditionally considered the country’s property hotspot.
In the east, the Office for National Statistics’ figures show prices soared 9.3pc over 12 months to May, compared with 4.7pc in London.
Now an average house costs £295,000 in Norfolk and Suffolk, an increase of £83,000 from 2005 to May this year, meaning a 39pc spike in almost a decade and significantly above the national £274,000 average.
Nick Taylor, managing director of Norwich-based estate agents Hadley Taylor, said the dualling of the A11, possible improvements to the Norwich to London train line and the A47 and Norwich City Football Club’s promotion all played a role in pushing up prices.
He said not as many houses were selling now than before, but agreed that prices were on the up.
“House prices are still rising, but they are rising because of demand and lack of supply,” he said.
“Demand comes from buy-to-let landlords in Norwich who are going into property over more traditional investment vehicles.
“And there is a desperate lack of supply. There are not enough terrace houses, family houses, flats, bungalows – whatever you are looking for, there is not enough of it.”
The figures showed prices in the East were rising quicker than the rest of England. Only Northern Ireland, which saw a year-on-year increase of 10.5pc, held this region back from being the fastest climber in the whole of the UK.
For first time buyers in the east, prices are up 38pc from £155,000 in 2005 to £215,000 in May this year.
Last year, almost half of all mortgages were lent to borrowers earning more than £50,000.
The number of mortgages for those earning anything less has consistently fallen in the last six years.
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