Suffolk house prices rise by 10%

HOUSE prices in Suffolk have risen by 10% in less than a year, it can be revealed today.According to estate agents, the public's confidence in the housing market has grown, however they claim first time buyers are still struggling to get on the property ladder as cautious lenders are demanding large deposits.

HOUSE prices in Suffolk have risen by 10% in less than a year, it can be revealed today.

According to estate agents, the public's confidence in the housing market has grown, however they claim first time buyers are still struggling to get on the property ladder as cautious lenders are demanding large deposits.

The report published today by the National Housing Federation in the East of England reveals that people need to earn more than �47,000 to buy an average priced house in Suffolk.

It shows the average house price in Suffolk in 2008 was just over �200,000, whereas the average individual income was more than �18,000, meaning the social housing stock is struggling to cope with demand.

However James Girling, a director at estate agents, Colin Girling & Co, and a member of the National Association of Estate Agents, said the state of the housing market is “significantly better” than last year.

Figures released by the Suffolk Observatory show that an average priced property in Suffolk at the start of the year was �173,595, however in the third quarter of this year, this rose to �191,813.

Most Read

Mr Girling said: “Since May, property prices have not been falling and we have been seeing a steady increase.

“The fear of property prices dropping has suddenly gone and people's confidence has improved. The situation is significantly better than it was last year however banks are still not helping first time buyers. As soon as lenders help them out, it will really pick up.

“We are really optimistic for the first four to five months of next year but it depends on what happens in the election. We would advise people to buy now.”

He explained that as most lenders require a 20 per cent deposit on a house, it is just not affordable for those starting out.

In the report, Home Truths East of England, it states that the least affordable area in the county, based on individual incomes, is Babergh, where the average house price is more than �225,000.

The National Housing Federation is calling on the government to increase public investment to support the building of new high quality social housing.

Gina King, head of region for the National Housing Federation in the East of England, said: “The figures in our Home Truths report paint a clear picture of the difficult situation facing families in the East of England who are looking for a home. With the combination of high house prices incomes that don't match, and a major shortfall in social housing in the region, it's no surprise that waiting lists are continuing to grow.”

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter