Concerns are being raised over the sustainability of the property market in the East of England, as house prices continue to rise in the region at a quicker rate than anywhere else in the UK.
Home.co.uk’s Asking Price Index indicates that property prices in the area have risen twice as fast as the rest of the country during the past year.
Rising values
Between June 2015 and June 2016, values in the East of England have risen by 13.9% in comparison to the average of 6.8% in England and Wales and 6.7% in Scotland.
The rise recorded in the East of England is far greater than the 7% seen in London over the same period.
Analysis of asking price figures for May and June 2016 further underline how the East of England has become the sharpest market in the UK. In this monthly period, the regions asking prices increased by 1.6%. London’s fell by 0.4% and prices in the South East only rose by 0.2%
England and Wales as a whole saw a rise of 0.4%.
East of England property prices soaring
Fastest selling region
Properties are also selling quicker in the East of England than in any other region. The average time on the market for homes in the area is 54 days, in comparison to 80 days in England and Wales as a whole.
Lack of supply is a key reason in variations in asking price by region. There was an 8% drop in supply of property in the East of England between May 2015 and May 2016. In the same period, the UK-wide drop in supply was 7%.
In comparison, property supply in Greater London rose by 2% and by 1% in the South East.
Doug Shephard, director of Home.co.uk, said, ‘a cooling London market has changed the dynamic of the UK property market and is now less of a focus for property investors. The new regional champion is by far the East of England where terrific price rises look set to rival even London in its heyday.’[1]
[1] http://www.propertyreporter.co.uk/property/are-prices-rising-too-fast-in-the-east-of-england.html