House prices rise again but cost of living crisis may cool market

Various images of for sale signs, to accompany story on house prices.

The average house price in the east of England rose to £334,570 - Credit: Archant

The average price of a house in the east of England increased by nearly 12% last year, new figures have revealed. 

The statistics, from Halifax, showed the average property value in the region rose 11.9% annually to £334,570. 

The average UK house price increased by more than £3,000 in April, in the longest run of monthly rises since 2016, the index revealed. 

The typical house price in the UK also hit a new record of £286,079 - an annual increase of 10.8% - but experts believe values are likely to soon cool given the economic conditions predicted

RMG Photography - February 2022Savills (UK) Ltd - Ipswich staff portraits.Pic - Richard Marsham

Peter Ogilvie, head of residential sales at Savills Suffolk - Credit: Richard Marsham

Peter Ogilvie, head of residential sales at Savills in Suffolk, said the market currently remains strong but growth could slow as we head through 2022. 

“With hybrid working patterns now embedded, a dream move to the country or coast is still at the forefront of many buyers’ minds," he said.

"Despite the current economic uncertainty, demand is continuing to outstrip supply, particularly for larger, detached ‘best in class’ family homes.

"We do expect things to cool slightly as the year progresses – although the supply-demand imbalance will likely support price growth, albeit to a lesser extent than what we’ve seen over the last 24 months or so.

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"For the moment the market remains strong. Sensibly priced homes in good locations – well connected market towns with plenty of shops, cafes and restaurants for example or the popular coastal areas – are continuing to attract lots of interest.”

RMG Photography - July 2017Savills - Staff portraits - 2017.Pic - Richard Marsham/RMG Photography

Stephen White, from the residential sales team at Savills in Essex - Credit: Richard Marsham

Stephen White, from the residential sales team at Savills in Essex, said the pandemic-fuelled housing boom will continue for the time being. 

“The ‘race for space’ hasn’t quite run its course – the desire for homes with plenty of greenery surrounded by countryside remains strong and demand still far outweighs supply," he said.

"We’ve also seen quarterly price growth in many regional towns and cities – the likes of Chelmsford, Colchester, Manningtree and their surrounding villages for example – which have good connectivity and train services into London, suggesting proximity to local amenities is a pressing consideration for buyers.

"Looking ahead, while we’re not expecting prices to fall, levels of growth are likely to slow given the economic pressures of rising interest rates and higher costs of living.”