October 24 2014 Latest news:
Thursday, April 3, 2014
Average East Anglian house prices have soared by 9.5pc in the past year, according to new figures.
Like so many things in life, it’s all about timing.
And when my partner and I purchased a two-bedroomed terraced house in Norwich’s Golden Triangle our timing seemed woefully out. Imagine the housing price boom as a graph, our purchase came right at the point it reached its peak. But we didn’t care, we just wanted somewhere to call our own and this little gem of a house was absolutely perfect.
Seven years later the time came to move on (a rampaging toddler saw to that), but we entered into the sale full of trepidation as to just how much we’d lose from the £195,000 shelled out. Would it be £1,000? £5,000? In our most pessimistic of moments £10,000 seemed possible.
I tried to reassure the other half that it was all relative, that the money we lost here, would be made up by the fact the next property we brought had suffered from the same fluctuation. But the prospect of losing such an amount still grates.
Six months on from the house being out up for sale it was a pleasant surprise to see the housing market had recovered so well that the expected loss turned out to be a gain.
The latest property report reveals dramatic rises in particular parts of the region – including a terraced house in the north of Norwich jumping from £110,000 to £145,000 in just six months.
According to the Nationwide house price index, in East Anglia, the average house price was £179,718, a 2.9pc rise over the quarter and a 9.5pc rise on the same time last year.
The figures mean that the region is now less than five per cent below its 2007 high.
Within the last quarter the price growth has slowed, the survey reveals.
It was 0.4pc in March, down from 0.7pc in February and 0.8pc in January. Stephen Pymm, director of Pymm and Co estate agents in Norwich and London, said that they had seen no evidence of house price growth slowing down.
He said: “Locally in Norwich and in the surrounding villages we have seen absolutely no slowdown whatsoever.
“We have seen growth since September to December last year.
“In fact, all we can see is a lack of good stock.”
House prices have grown consistently around East Anglia. In Norfolk, the average house price for the quarter was £187,218, a rise of 6pc over the three months.
Peterborough saw the biggest growth in house prices, at 12pc, with Cambridgeshire and Suffolk average prices rising by 8pc.
Figures released by national estate agency William H Brown last week revealed that Norwich experienced a deluge of new buyers in March, up 32pc on the year before.
According to the agency, eight people chase every new property instruction across Norfolk.
Mr Pymm puts an increase in buying down to low interest rates and people shaking off the effects of the recession.
“It has been six years since the market crash. People want to live their lives and move on,” he said.
Antony Bromley-Martin, manager at Bedford’s Estate Agents in Suffolk and Norfolk, has also seen an improvement in the market.
He said: “What we have found is that activity has, without question, increased.”
However, he believes that the steep levels of growth are not consistent around the county.
He added: “If you look at the Norwich and Cambridge market, prices are going to be higher. There is a distinct lack of houses at the minute, so areas like the Golden Triangle will be the first to rise.
“Normal properties in a rural area are definitely not in a property boom like the figures suggest.” The Nationwide survey revealed that Cambridgeshire was the most expensive place to live in East Anglia in the first quarter of 2014, with the average house price at £229,719.
The average cost of buying a home in Suffolk came in at £199,018.
Peterborough was the most affordable area to set up home in, with an average house price of £172,218
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Don’t miss tomorrow’s property supplement in the EDP.