The average price of a property in the UK has reached a record high. The Office of National Statistics (ONS) has released the figures for February – revealing that the average house price is now £217,502. This continues a general upward swing in the value of the housing market.
Great for Investors
The projected average annual increase in property value has also increased – from 5.2% in January to 5.6% in February. Investors have every reason to be pleased about this. With housing here in the South East increasing in value by over 5% each year, property is a great place to put your money at the moment.
Bad News for First Time Buyers
However, the increase in property value makes it even harder for first time buyers to get a foot on the property ladder. Mortgage providers impose tougher terms on buyers with small deposits – that’s if they will lend to them at all. As prices continue to rise, first time buyers have to work for longer to save up the deposit for a house. Many, who in previous generations might have bought their first home in their twenties, are now waiting until their thirties and they may still be paying off their 30 year 95% mortgages as they approach retirement.
Norfolk and Suffolk
The ONS has no statistics available for the local area more recent than 2013, but property website Right Move has collated data on over 1000 properties that have sold in Norfolk in the last year. They reveal that the average price of a house in Norfolk is £235,248. That is a good £20,000 more than the national average. Suffolk properties are worth nearly another £20,000 on top of that. The average price there is £254,108 – prices being pushed up by the fact that the London commute is shorter than the 2+ hours from Norfolk.
As long as demand continues to outstrip supply, the laws of economics dictate that prices will rise. There is no indication that a government primarily tied up with austerity commitments and Brexit is going to embark on a massive housebuilding programme, so it looks like a good time to buy – for those who can afford it.
If you’re searching for the perfect property, check out our list of properties for sale in Norfolk and Suffolk. They range from luxury country escapes to smart contemporary city apartments. For further information on any of our properties, please call 01603 338433.
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