Properties at top end of Norfolk market see annual growth of almost 15pc

Aerial view of The Old Rectory, North Runcton, which is for sale for £1.85m with Savills

The Old Rectory, North Runcton, is one of Savills' 'prime' listings, currently on the market for £1.85m; inset Natalie Howlett-Clarke and Ben Rivett, heads of residential sales at Savills in Norfolk - Credit: Savills

The UK’s prime residential markets have seen further growth in the last year – with prices in Norfolk increasing by almost 15pc in the 12 months to the end of March.

The latest research has been released by Savills, and agents say the rises continue to be underpinned by high levels of buyer demand coupled with low levels of properties for sale.

The analysis shows that in Norfolk prices at the higher end of the market (defined as the top 5-10pc by value) increased by 14.5pc in the 12 months to the end of March this year. In the first three months of this year, meanwhile, prices increased by 1.7pc.

The Old Rectory, North Runcton, is on the market with Savills for £1.85m

The Old Rectory, North Runcton, is on the market with Savills for £1.85m - Credit: Savills

Nationally, prime residential markets witnessed annual price growth of 9pc on the back of 2pc quarterly growth.

In the £2m+ market, prices have increased by 6.7pc year on year across the East of England, with quarterly growth of 3.6pc. Nationally, there have been rises of 10.3pc and 2pc respectively.

Ben Rivett, joint head of residential sales at Savills Norfolk, said: “With the ‘race for space’ yet to fully run its course, demand for homes outside London remains.

Ben Rivett, joint head of residential sales at Savills in Norfolk, pictured in north Norfolk, UK

Ben Rivett, joint head of residential sales at Savills, Norfolk, saved hard for his first home with wife, Becky - Credit: Ben Rivett

"The need for greenery clearly continues to be a factor – as evidenced by the price rises in the £2m+ market where best in class country houses remain highly sought after.

“There is still a strong core of unmet demand at the top end of the market that, for now, remains undeterred by higher costs of debt, rising costs of living and the geo-political uncertainty triggered by the war in Ukraine. 

“Here, equity outweighs debt as a source of funding and much higher levels of disposable income mean buyers have been more insulated against macro-economic pressures.”

Natalie Howlett-Clarke, joint head of residential at Savills in Norfolk

Natalie Howlett-Clarke, joint head of residential at Savills in Norfolk - Credit: Savills

Elsewhere, prime central London recorded its strongest quarterly price growth in eight years as international buyers began to re-enter a stock-constrained market that has been largely dominated by domestic buyers over the past two years. 

Prices ticked up 1.1pc in the quarter, leaving them 2.8pc higher than a year ago. Though still outpaced by the country, this was the most robust performance since the stamp duty changes of 2014.

Natalie Howlett-Clarke, joint head of residential sales at Savills in Norfolk, added: “With hybrid working patterns now embedded, a dream move to the country is still at the forefront of the mind for many buyers. 

Aerial view of The Old Rectory, North Runcton, which is for sale for £1.85m with Savills

The Old Rectory, North Runcton, is one of Savills' prime residential properties for sale - Credit: Savills

“However, we’re also seeing many regional cities, towns and villages showing stronger quarterly price growth, suggesting proximity to local amenities is becoming a more pressing consideration.

“Looking ahead, while the supply-demand imbalance remains a feature of the market, the lack of suitable stock is expected to support further price increases. However, this rate of growth is likely to slow as the year progresses given economic concerns.”

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