House prices go up in Norfolk by 1.3 per cent - equating to a 4.3 per cent rise for the year
PUBLISHED: 14:27 18 October 2018
Your home in Norfolk went up in value in August - with areas of Breckland going up by the most, and by the least in the west of the county, new figures show.
House prices in Norfolk went up on average by 1.3 per cent in August – amounting to a rise of 4.3 per cent over the last year, higher than the annual average increase for the rest of the UK.
Areas seeing the highest rise in August were Breckland, covering places like Thetford and Watton, where homes rose by 3.2 per cent, well over the average for the whole of the East of England. In South Norfolk, houses also went up by much more than the average, by 2.1 per cent and only in King’s Lynn and West Norfolk did homes drop in price – by just 0.4 per cent.
The figures mean house prices have gone up on average in Norfolk by 4.3 per cent over the last year, higher than the region’s average as a whole, at 1.6 per cent and the UK’s average, at 3.2 per cent, although not higher than individual areas - for example, the East Midlands saw the highest price rise of 6.5 per cent over the year.
The latest data from the Office of National Statistics shows that the average property in Norfolk sold for £227,340 – slightly under the UK average of £232,797.
The data comes from the House Price Index, which the ONS compiles using house sale information from the Land Registry.
The figures also showed that buyers who made their first step onto the property ladder in Norfolk in August spent an average of £188,614 – around £50,000 more than it would have cost them five years ago.
Other good increases in August were seen in North Norfolk, where house prices went up by 1.6 per cent and Norwich, by 1.2 per cent.
In Suffolk, property did not fare anywhere near as well as in Norfolk for August; with prices going up by just 0.4 per cent and in Waveney, values went down by 1.2 per cent.
Lawrence Bowles, associate director of the research team at estate agents Savills, said the uncertainty over the outcome of Brexit negotiations was fuelling a “tougher lending environment”.
He said: “House price growth in real terms is slowing, and inflation is growing at the rate we’ve been used to over the last few months. Buyers, sellers and lenders are all thinking maybe they should wait until they see the outcome of negotiations.
“Longer term, the issue we expect to see is affordability, as we expect the Bank of England base rate to be back above 2% by 2021 – closer to historical levels, rather than the ultra-low rates we have seen in recent years.
“That, combined with stricter affordability stress tests, will make it more difficult for households to demonstrate that they are able to afford mortgages.
“But we would expect to see a bounce at some point, between finding out the Brexit outcome and the start of higher interest rates.”
Between July last year and June this year, the most recent 12 months for which sales volume data is available, 16,020 homes were sold in Norfolk, 4 per cent fewer than in the previous year.
The highest house prices in the country in July were found in Kensington and Chelsea, London, where properties sold for an average of £1.35 million – 16 times the cost of a home in Burnley, where the average property cost just £85,900.