According to the latest asking price index from home.co.uk, the spring price surge has come early to the East of England. The reason for this surge is being driven by a severe property shortage and high demand!
Annualised price rises in the East of England have now taken over both Greater London and the South East.
Annualised Price Rises:
- East of England – 12.2%
- Greater London – 12.0%
- South East – 10.3%
What’s happening across the rest of the country?
Prices remain on a strong across England and Wales with a rising trend looking set to continue as interest rates are currently on hold until at least 2017.
The shortage of properties on the open market is a problem affecting the whole country and although the government are directly commissioning the building of up to 13,000 homes by 2020 there’s little evidence to suggest this is having any positive effect of the market as yet!
Danny Luke, Director of Quick Move Now comments;
2016 looks set to be another interesting year for the property market. The number of properties available to buy is likely to continue to be a problem nationally. Recent stats from home.co.uk have suggested that there are 47% fewer properties for sale than there were in December 2007, and 16.1% fewer than there were this time last year. If people are cautious about moving because of a lack of choice, or if they struggle to secure a new mortgage because of the new Mortgage Credit Directive, supply will likely continue to fall and we could end up with a very stagnant property market.
If you’re considering buying or selling a property in 2016 it’s important that you look at how the local property market is performing in order to manage your expectations effectively. Whilst national headlines are helpful in giving an overview of the property market, every region is different and the property market should be managed accordingly.