There is a continued strong demand for new build properties across the region. Owner occupiers are searching for aspiration homes but also often for smaller, practical accommodation driven by changing family circumstances. New homes that are cheap to run and easy to maintain are popular choices, with Help to Buy and increasingly attractive developer packages having a significant impact.
Investors are also set to continue their important role in the marketplace as buyers seek out property as an attractive home for their money amid poorer performing asset classes. The attraction that Cambridge holds for overseas buyers is well documented and now Norwich is starting to hit their radar.
The UK’s private rented sector continues to offer opportunities for investors. This sector has grown enormously in recent years, and despite initiatives to support home ownership, Savills expects it to swell by a further one million households in the next five years.
An economy in recovery and the low interest rates have boosted the appetite for East Anglian country houses. The bottom of the market has passed and with it the feeling that there was time to sit and wait. Now the mood is one of growing optimism and we have experienced an upturn in househunter activity. This winter’s dreadful weather has had some impact on the amount of new stock currently available; however, the signs are that supply is set to increase as spring approaches.
Buyers are emerging from London once again, attracted by the lifestyle and value for money represented by prime regional property, and the long-awaited ripple is beginning to reach as far as Norfolk.
For prime property in areas closest to London, such as Loughton, 6% growth is forecast this year, decreasing slightly as the distance increases and locations become less commutable. Norfolk and Suffolk, for example, may see house prices grow by 4%. Growth is likely to slow down in 2015 due to uncertainty surrounding the election, before resuming again in 2016.