Partly Cloudy

Partly Cloudy

max temp: 23°C

min temp: 19°C

Search

East of England/Suffolk: House market to cool off after ‘feeding frenzy’ drives £20,000 annual rise

18:52 15 July 2014

The report, entitled East of England: Broken Market, said the housing crisis will only be solved if more affordable homes are built.

The report, entitled East of England: Broken Market, said the housing crisis will only be solved if more affordable homes are built.

Archant

The region’s overheated housing market will cool off this summer following a “feeding frenzy”, it has been claimed, after figures showed values have risen by £20,000 in a year.

The average house price in the east of England rose to a new record high in May, up to £273,000, according to the Office for National Statistics.

It was an annual increase of 8.6%, the third highest rise in the UK, and was the sharpest spike since August 2010.

In comparison, between January 2011 and September 2013, the average annual rise each month was 0.8%, with prices going down on nine occasions.

It come weeks after the Bank of England put curbs on riskier mortgage lending with a new cap on home loans and stronger checks to make sure borrowers can afford repayments.

In Suffolk, the average home now costs £233,151 – an annual increase of £20,042 (a 9.4% rise), according to property website Zoopla.

Values are the highest in Aldeburgh at £424,699, and lowest in Brandon at £153,083.

Elsewhere, they are £311,939 in Woodbridge, £259,449 in Bury St Edmunds and £216,694 in Ipswich.

Nationally, the fresh surge in values has stoked fears of a property bubble, amid growing concern that interest rates, frozen at 0.5% since March 2009, may need to rise within months.

Critics have also raised fears the controversial Help to Buy scheme will drive up prices by increasing housing demand without stimulating the supply of new properties.

Jan Hytch, the East Anglian-based president of the National Association of Estate Agents, said: “There is a feeling the market is settling nicely now and activity is cooling off after a feeding frenzy at the start of the year, which is not a bad thing.

“There were lots of transactions that should have been spread out over the last three or four years, but haven’t because of the recession. A lot of things came together which brought confidence into the market.

“London agents are now saying the epicentre of a white-hot volcano which was distorting the market is now cooling down – so hopefully we won’t see property prices rise this year like the last six or 12 months.”

Alex Leader, of the Ipswich branch of estate agents Savills, said the region is experiencing a “slow, steady growth”, but warned hotspots could mask the figures.

He said: “We are seeing slow, steady growth and comparing the current state of play to 2007 peak values is a useful way of benchmarking recovery.

“Analysis of our own prime residential figures by our research team shows that here in Suffolk we have recorded quarter on quarter growth of 1.3% and year on year growth of 6.2%, leaving the county -3.4% below the height of the market.”

1 comment

  • Houses are "Homes for people" and not commodities to earn profit from . Until homes are only used for people to live in then houses will continue to rise out of reach for many . This is one of the most serious problems with this country . There needs to be some legislation to control it , there are flats on the waterfornt that have been sold three times and never had anyone living in them . In London Chinese and other far east investors buying 5 or 6 at a time and many not lived in either . No wonder there is a housing shortage in this country ! It should be illegal to have "Homes" empty after 3 months of ownership .

    Report this comment

    Poppys Dad

    Wednesday, July 16, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Benefit cheat to be sentenced

A benefit cheat who falsely claimed around £37,000 over nearly 10 years has been told she will be sentenced at Ipswich Crown Court.

Coach Laura Johnson (middle) with the new team. Christchurch Ladies have completed a merger with Grasshoppers Ladies Hockey Club.

The effect of Team GB’s incredible success on the hockey field in Rio is already being felt in Suffolk, where the next generation of talent last night began preparing for a new season.

Rita King, the victim of the Walton care home shooting

An 87-year-old man who shot his wife dead at a care home is due to be sentenced today.

Bacton Community Middle School development plans. Left to right, David Barker MBE, chairman of Westhorpe Parish Council, Phil Webb, chairman of Wyverstone Parish Council and chairman of Bacton Parish Council Richard Peaty.

Suffolk County Council has been accused of hypocrisy over the Olympic legacy – just days after it backed calls for people to get more active in the wake of the UK’s medal success.

Fire crews tackled a blaze on farmland near Bury St Edmunds

A fire crew remains at the scene of an overnight fire in Great Barton which saw 50 tonnes of straw go up in flames.

The scene of police activity on St Matthews Street, Ipswich

Police who carried out a raid at an Ipswich town centre flat found it had been turned into a cannabis factory with more than 200 plants at different stages of growth, a court has heard.

Manningtree band Superglu

A band from north Essex will be headlining at stage at one of Britain’s biggest music festivals this weekend.

Great Eastern Rail Campaign members at Ipswich Station: 
Jonathan Denby, David Burch, Chris Starkie, Chloe Smith MP and Bun Gummer MP

In the second of five three-minute interviews Ben Gummer, the MP for Ipswich, gives his reaction to Abellio Greater Anglia being awarded the rail franchise for East Anglia.

Maz Robinson and Harry Studd with April after she was found safe and well after more than four days.

Staff at Suffolk Owl Sanctuary have spoken of how relieved they are one of their birds of prey has returned – after going missing for more than four days.

What can you do with the kids in the last few days of the summer holidays?

There is just over one week left of the summer holidays but there is plenty still to do before the schools open their doors for a new term.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

MyDate24 MyPhotos24