House prices in the East of England remain strong up 11% over the year despite a slowdown in property sales across the country.
Data from the Office of National Statistics (ONS) shows property prices in the East of England up 11.3% over a year to December 2016, monthly rise of 1.9% and with an average price of £281,513.
This compares to the average rise in the UK of 7.2% year-on-year, monthly rise of 1.4% and property values of £219,544.
Rising house prices continues to pressure first time buyers as they would require a larger deposit or higher earnings to purchase their first home.
House price growth recovering
According to the Bank of England housing market activity has recovered following a period of weakness in all areas apart from central London.
The report noted strong competition in mortgage lending which may reflect the current prolonged period of low interest rates.
Lower mortgage rates benefit buy-to-let investors as they can remortgage to reduce the cost of interest repayments to lenders.
Average prices and annual change for the UK to December 2016 from the ONS are shown below.
| Area | Annual Changes | Property Values |
|---|---|---|
| London | 7.5% | £483,803 |
| South East | 8.5% | £316,026 |
| East of England | 11.3% | £281,513 |
| South West | 7.0% | £242,808 |
| England | 7.7% | £236,424 |
| West Midlands | 7.1% | £181,328 |
| East Midlands | 7.1% | £176,790 |
| Yorks and the Humber | 6.5% | £154,985 |
| North West | 6.6% | £152,259 |
| Wales | 4.7% | £148,177 |
| Scoltand | 3.5% | £141,553 |
| North East | 4.1% | £128,631 |
| Northern Ireland | 5.7% | £125,480 |
The East of England is the only region where annual price rise is in double figures at 11.3% with the South East next with 8.5%.
For home movers the gap between their current and the next more expensive home increases which means they need a larger mortgage or deposit to buy.
One advantage of rising house prices for homeowners is remortgage buyers can now release capital to spend on their home such as improving a kitchen, bathroom or adding an extension.
London borough slowing price rises
House price growth in London is slowing as expected in the capital although seven boroughs still have double digit rise when compared to a year ago.
Average prices and annual change in London for December 2016 from the ONS for the top ten boroughs are shown below.
| London Borough | House Prices |
Annual Changes |
|---|---|---|
| Barking and Dagenham | £288,927 | 14.1% |
| Waltham Forest | £438,855 | 13.6% |
| Bexley | £334,634 | 13.1% |
| Havering | £353,659 | 12.4% |
| Lewisham | £419,005 | 11.8% |
| Croydon | £365,564 | 10.6% |
| Newham | £353,476 | 10.6% |
| Enfield | £394,691 | 9.8% |
| Redbridge | £404,344 | 9.6% |
| Hillingdon | £415,840 | 9.4% |
Barking and Dagenham leads with 14.1% higher prices with an average value for a home £35,782 higher over the year at £288,927.
The borough of Waltham Forest has posted the second highest rise of 13.6% with an average value for a home £52,414 higher over the year at £438,855.
Older homeowners in London have accumulated considerable value in their homes and the equity release buyer can access wealth using a lifetime mortgage for holidays or home improvements.
Only one borough Hammersmith and Fulham had a decrease in house prices of -2.1% with an average value for a home lower by £16,201 higher over the year at £755,759.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner release equity from your property, we can recommend the lifetime mortgage to access wealth for home or garden improvements and holidays.
Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator. Start with a free mortgage quote or call us and we can take your details.
At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.
