Mark Mugliston from our Diss branch looks at some interesting reading from new house price surveys.
Diss experienced one of the largest house price
increases of any town in the country during 2018, according to figures complied by the property
Their research crunches the average values per
postcode area compared to the same periods in 2017 and their findings show a
gain of almost 8% in Diss, making it the third largest increase for a town in
the UK. This is in comparison to a much
more lukewarm increase of just 1% overall across the country.
estimate, it makes the current average house in Diss worth £311,486. Sounds nice!
However, before you crack open the champagne not everyone agrees that
things are quite that healthy.
calculates that the average house price in the IP22 postcode actually dropped
from £315,763 to £304,850 during 2018, that’s a fall of 3.5%. I’ve also looked at the Land Registry data on
the YouGov UK Price Index site and they calculate that, year on year, Suffolk
property values have increased by 2.1% and Norfolk by 4%.
So who is right?
Clearly the stats are all from slightly different sources – the YouGov numbers
are based on actual sold house prices at the Land Registry so they are likely
to be the most accurate and tend to be the ones that the industry and wider media
look to for trends.
Whilst I was
researching this I looked at some of the other data provided and some
interesting stats jumped out at me.
Across the Eastern
Region, the number of people buying a new home has literally halved in the last
year, but new build prices have risen by 8.5%.
If developers are overpricing their properties, is that why demand for
their homes has fallen?
The numbers of
first time buyers has, broadly, remained stable – we want that to increase if
the housing market generally is to get more lively.
stat is that 88% of all houses sold achieved less than their original asking
price. That’s an increase on the
previous year and could reflect agents and vendors being more realistic and how
they feel about testing the market.
I’m certainly of
the view that if we price a property accurately, almost conservatively, we
immediately get more interest and as a result find it easier to get close to
that asking price. It will also probably be a better price than if we had
tested it higher but had taken longer to find a buyer.
numbers, the good news is that Diss is being publicised as a popular place to
live and that should drive demand for property in the area. That’s got to be a good thing for all of us -
agents and residents alike.
Looking across the
UK, the total value of Britain’s homes has grown by an estimated £83 billion
across 2018 to reach £8.29 trillion, adding around £2,860 to the average price
of a home.
The general uplift
has happened despite uncertainty over Brexit and stretched affordability when
comparing house prices with incomes - although some parts of Britain have seen
Here are those top
ten towns for the biggest property price growth in 2018 with the current
average value and the percentage increase, according to Zoopla:
1. Ryde, Isle Of
Wight, £242,016, up 10.24pc
2. Smethwick, West
Midlands, £163,627, up 9.67pc
3. Diss, Norfolk,
£311,486, up 7.89pc
Kent, £333,212, up 7.63pc
Torfaen, £162,319, up 7.52pc
6. Crook, County
Durham, £120,792, up 7.13pc
7. Torquay, Devon,
£244,414, up 7.05pc
8. Driffield, East
Riding of Yorkshire, £209,406, up 6.93pc
9. Brighouse, West
Yorkshire, £180,739, up 6.75pc
North Lanarkshire, £146,307, up 6.74pc