March 8 2014 Latest news:
Thursday, December 19, 2013
House prices in the region will rise by 10% over the course of next year, higher than any other area outside of London, according to new research released today.
Estate agents in Suffolk have admitted first-time buyers will be nervous about the expected spike, but they have stressed people in the industry want to avoid the same mistakes made between 2002 and 2007, when the market declined rapidly.
The rise is predicted in a new report today from the Royal Institution of Chartered Surveyors (RICS), which points to burgeoning demand but - as yet - sluggish supply.
There are, however, suggestions locally that improved confidence will lead to increasing numbers of properties coming on to the market next year.
Jonathan Waters, managing director of Jonathan Waters Estate Agents, said the rise could be a worry for a first-time buyers.
But added: “I think it is good news they are going up but I think it is going to be more sensible this times around and that is good for everybody, it really is.”
Ian Fry, regional director of William H Brown, which operates in Suffolk and Essex, said: “Going into next year we are noticing that we have a lot of properties on the market, so that is going to help prices.
“Like anything, it encourages activity in the market. An increase in price encourages people to move and that stimulates the market, which is a good thing.
“I think it also gives (first-time buyers) the confidence to come into the market, which is good news. It (housing) shouldn’t be seen as a short-term investment.”
James Neal, of Woodbridge-based Neals Estate Agents and Auctioneers, added: “If we believe every survey that was printed then we would be in for a number of surprises at the start of every year.
“It is likely that we will see an increase in transactions next year which is good for the market, but that increase will only come about if vendors decide the time is right to sell.
“A gradual increase is infinitely better than sudden peaks and troughs – a stable market is usually better for both buyers and sellers.”
The RICS believes the expected growth is driven by an imbalance between increasing buyer demand and a slow supply of new instructions to estate agents.
But while the shortage of homes coming on to the market is a key factor behind the price rise, there is expected to be a significant rise in new builds this year.
The highest price rise for 2014 is forecasted for London at 11%, followed by the East of England and East Midlands at 10%
The figures also suggest the cost of renting a home in the East of England region will increase by 1%.
Dayle Bayliss , RICS East spokesman, said: “While the number of new homes being built is now on the rise, it still won’t be anywhere near enough to meet demand and we expect the problem of insufficient housing stock to be the main driver behind price increases over the next twelve months.”