East Anglian house prices rise but property supply falls
House prices in East Anglia are rising at a faster rate than all but two regions in the UK, according to the latest RICS UK Residential Market Survey.
The research shows that 47% more surveyors in the area saw an increase in property prices than those that didn’t, making East Anglia the third highest price growth areas in the UK in May (behind the North West and Northern Ireland).
The surge in prices is unlikely to stop, and there is strong optimism that both house sales and prices will increase in East Anglia over the next three months (19% and 42% respectively).
New buyer enquiries in East Anglia are also on the up, with a net balance of 39% of respondents reporting an uplift – making East Anglia the second highest performing region for this category and this the highest rise for over a year.
However, supply of new homes coming onto the market continues to be an issue with 15% more surveyors saying they’re at a lower rate than a month ago, the third consecutive month this pattern has occurred.
Simon Rubinsohn, RICS Chief Economist, said: “There had been some hope that, post-election, the removal of political uncertainty would encourage more properties onto the market but the initial indications are that this is not proving to be the case. As a result, it is hardly surprising that prices across much of the country, including in East Anglia, are continuing to be squeezed higher with property set to become ever more unaffordable.”
W J Hartnell FRICS, of Simon Matthew & Co in Ingatestone, added: “The market has been very buoyant since early March. However, there are few properties coming on the market.”