HOUSE prices in East Anglia could rise by as much as 6% next year and in 2007, with some experts predicting a “mini boom”.
A survey published by The Royal Institution of Chartered Surveyors (RICS) forecasts a 4% rise nationally in house prices in 2006 and 2007.But RICS regional spokesman Stuart Harris said East Anglia could outperform large parts of the country and see increases closer to 6%.
The reason has been put down to the fact the region experienced the national slowdown in growth much quicker than in other areas and is already picking up.“The latter half of 2005 has been rather encouraging and we could in fact see house prices being a little firmer than the 4% when you get into this time next year,” said Mr Harris.“It's difficult to be too definitive - but it could be more like a 5% or 6% increase by this time next year.“We do have very stable interest rates and we have a situation where mortgage payments as a percentage of household income is still low compared to the historic average.“The slow down gripped this area a little bit before and what we are probably seeing is the market already rebounding a little bit more noticeably in this area.”
Colin Girling, Suffolk spokesman for the National Association of Estate Agents, said the region was likely to experience a “mini boom” next year if the Government remained on target to introduce the new home information packs.Home information packs become compulsory in 18 months and are part of a huge shake-up of the way people buy and sell houses.As well as home condition reports, the pack will contain the results of searches, copies of deeds and the terms of sale. The Government estimates the whole package will cost a seller around £600 plus VAT. Mr Girling said: “If the Government keep to their schedule and bring them in 2007, the market is going to have a mini boom because people wanting to sell will put their property on the market before the packs come into force because it will cost money.“Yes, I can see the market going up next year. At the present moment, movement is minimal but if the market does buck up then I can see 4%-5% is quite possible.