Housing round-up: 2018 was a good year for East of England but 2019 will see price growth fade
The East of England has weathered the worst of the storm gripping the country’s housing market, according to the latest data from the Land Registry. HM Land Registry has shown that in the Eastern region as a whole, house prices have slightly increased towards the end of 2018, with an increase of 0.5% between September 2018 and October 2018.
The average East of England home sold in October 2018 has now bumped up to £294,548.
In Norfolk specifically, house prices between the two months have increased from £229,126 to £230,729.
Prices are also up on the same period last year, where in October 2017 the average house price in Norfolk was £221,959.
Reflecting this, the House Price Index (HPI) – which is a tool used to show the increase or decrease in the value of a single-family home – has increased from 125 to 126.
However, analysis of the coming year indicates the national market downturn is far from over, with house price growth fading to a standstill in the coming year and a steady decline in availability.
The Royal Institution of Chartered Surveyors (RICS) have published their 2019 forecast, saying that house price growth is likely to grind to a halt by next summer but the lack of supply should prevent outright falls.
RICS reported: “It is unlikely that sales will grow in 2019. In the past two years sales activity has declined and annual completed transactions remain significantly below the 1.7million high in 2006.
“Given the obstacles in the current market it is anticipated that activity will weaken further.”
Such obstacles refer to uncertainty caused by Brexit, affordability issues and prospective interest rate rises.
Availability will also remain low, according to RICS. “In the second-hand market, not enough properties have been listed to replenish those sold, and the number of new properties being listed for sale has fallen consistently,” the report says.
Looking to the rental market, RICS reported that due to high demand but low supply, rent is likely to be squeezed higher – albeit modestly – in the next four quarters.