Thursday 28 April 2016

Property spring review

The 60 mile/60 minutes from London formula, otherwise known as the ‘golden radius’, is a widely acknowledged force in the housing market.  So it was interesting to read research recently published which has calculated that for every one minute’s journey time by train from London into the surrounding commuter belt, house prices go down by £3,000 – ie the longer the journey, the lower the house price - with the usual caveats when dealing with averages, of course.

Looking at where our buyers are currently coming from, we continue to experience strong demand from local buyers and those from Essex and London.  However, a new strong trend has emerged over the past year with buyers from Buckinghamshire favouring our county.  In addition, expats from the Middle East - who are now experiencing job uncertainty owing to falling oil prices - are migrating home.

It makes a lot of sense for Buckinghamshire buyers to choose Suffolk.  According to Rightmove, the average price of a detached house in Bucks is £590,812 against an average detached house price of £333,642 in Suffolk.  Our area also has the benefit of trains taking us direct to Liverpool Street and, hence, The City, whereas from Buckinghamshire trains terminate at Paddington or Marylebone.

We had a rush of buyers looking to complete on purchases prior to 1 April and the introduction of the new stamp duty surcharge on second homes.  The second home market and buy-to-lets are likely to be quieter in the short-term now as the market digests this additional taxation.

The London second home buyers favour Suffolk for its escapism, cultural offerings and gently rugged landscapes.  These buyers tend to live in North London, eg Hampstead but also – and surprisingly – from the less conveniently accessed, West London, eg Notting Hill.  Our Coastal region is especially favoured by profile figures in the media and cultural arts.

The keenest tier of the current market is for village houses in a price range of £600,000 - £850,000.  It is a property style and bracket which sees buyers with young families compete with those who are downsizing, as well the second home buyers. Quality stock in pretty villages with amenities is moving quickly.


Caroline Edwards
Partner
Residential Sales, Long Melford

T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

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