East Anglia: House prices still continuing to rise

House prices are still rising in East Anglia. House prices are still rising in East Anglia.

Richard Cornwell richard.cornwell@archant.co.uk
Monday, December 30, 2013
7:25 AM

New evidence has been published today revealing that house prices in East Anglia are continuing to rise – with the trend expected to carry on throughout 2014.

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Leading residential property analysts Hometrack said prices have risen a further 0.5% this month, despite the usual slowdown in transactions and house-hunting because of the Christmas season.

Earlier this month the Royal Institution of Chartered Surveyors said it expected house prices in the East of England to rise 10% in the next 12 months.

Hometrack has not put a value on how much it thinks prices will go up, but point to some continuing problems in the housing market – including the lack of supply of homes for sale, with many people keen to hold onto low interest mortgage deals, to match the demand from those wanting to buy.

In the eastern region in December, the number of new properties coming onto the market fell by 3% and there was a drop of 2% in the number of sales agreed.

Richard Donnell, director of research at Hometrack, said: “The December survey shows signs of a seasonal slowdown in housing market activity.

“Demand for housing fell for the first time in 11 months, as did new sales agreed. House prices continued their upward trend with average values rising by 0.5% for the fourth month in a row.

“While transaction volumes have risen in 2013, respondents to the survey report that supply constraints are caused by a result of high transaction costs and households wanting to hold onto attractive mortgage rates secured at the start of the downturn.

“Low levels of new house-building have added to the general scarcity of housing for sale.”

Mortgage rates are expected to have the greatest influence on the outlook for the market over the next two to three years.

Mr Donnell added: “Overall we expect the momentum in house price growth to spill over into 2014, supported by a continued lack of supply and rising demand.”

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