Rising houses prices in East Devon 'set to rise further'

PUBLISHED: 11:42 07 January 2019

Brexit 'is the elephant in the room' for the UK housing market. Picture: Petr Kratochvil.

Brexit 'is the elephant in the room' for the UK housing market. Picture: Petr Kratochvil.

Archant

"The elephant in the room is, of course, Brexit. Nobody can quite know how this national tumult will affect the property market, or any other markets for that matter."

The average house in East Devon costs £17,500 more than it did in 2017, according to Government figures.

In 2017 the average house in East Devon cost £274,864 but in the 2018 the average cost went up to £292,495, a 6.4% rise according to the UK House Price Index.

There were also fewer houses sold in 2018, 230 houses sold, than in 2017 when 325 houses changed hands.

In 2018 new homes in the South West cost significantly more to buy than existing houses, an average new home cost £313,440, whereas in 2017 an existing home cost £255,741.

Commenting on the figures East Devon estate agent Bruce Penny, of Pennys Estate Agents, said that strong demand from prospective buyers and fewer houses on the market are the main reasons for rising prices.

“Looking to 2019 there seems no sign of an end to the shortage of supply, and house prices look set to rise further,” said Bruce.

“A substantial part of the housing supply however comes from New Builds, and these have shown to be at a significantly higher price on average than second hand homes. This is known as a new home premium, when you buy a brand-new home, you’ll usually pay a premium for the privilege of living somewhere that no-one else has. It’s very pleasant to move into a property where everything is brand new, but it can be more expensive.

READ MORE: Rising house prices ‘disastrous’ for first time buyers in East Devon

“The elephant in the room is, of course, Brexit. Nobody can quite know how this national tumult will affect the property market, or any other markets for that matter.

“What we do know is that large numbers of professional landlords are bailing out of the buy-to let sector, deterred less by Brexit than by increased taxation and legislation. Fortunately first time buyers can now benefit from motivated sellers and more choice in a time of low interest rates and high employment.

“So if you are thinking about moving in 2019 you have choices. Consider them wisely. But also recognise that this is an extraordinary time. Nothing is certain. Don’t bank on the killer sale. Do aim for a great purchase. Be realistic. Price, price, price is as important as location, location, location. Don’t put your biggest asset in the hands of the inexperienced. Finally, my advice is buy a property that you love and that will enhance the wellbeing of you and your family, your family is after all your most important investment. If you get some growth in value then think of that as a bonus.”

In England house prices grew by 2.4% in the year to October, down from 2.6% in the year to September 2018.

English house prices were growing slower than the UK annual rate of 2.7% in the year to October 2018.

The North West was the fastest growing region with an annual growth of 4.9%, up from 3.4% in the previous month.

London was the slowest growing region, falling by 1.7% in the year to October 2018.

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