Surge in value of homes in East due to 'supply shortage'

Homes available for sale are few and far between at the moment. Picture: Jane Howdle

The value of homes in the East increased by 11.6 per cent during 2021. - Credit: Archant

The total value of homes in the East of England increased by £99 billion (11.6 per cent) last year, meaning the 2.65 million residential properties in our region are now worth £954 billion. 

UK-wide, Savills found that the combined value of housing reached a record £8.41 trillion during 2021, an increase of £804 billion (10.6 per cent). 

London's increase was the smallest in the UK at just 7.4 per cent, though that equates to a sizeable £130 billion in stock. 

Indeed, despite being home to less than half of all of the UK's homes (44 per cent), London and the South East still hold the majority (62 per cent) of the total housing stock in terms of value.

Nick Ingle, head of residential sales at Savills in Harpenden, said regional markets' success in outpacing London was due to a supply shortage and a surge in demand for larger homes and country properties. 

“The research tallies with what we’ve been experiencing on the ground,” he said. “The stamp duty holiday and low interest rates encouraged many people to move who perhaps wouldn’t have otherwise.

"But, over and above that, lifestyle needs and housing preferences hugely shifted over the course of the pandemic, with many reassessing what they wanted from their living arrangements in response to increased working from home and the need for more inside and outside space." 

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The supply shortage has increased competition and pushed up prices, Nick added. 

"In a lot of cases properties have been on the market for a very short period of time and as a result there has been a huge imbalance between supply and demand – with a real shortage of property available for people to buy.

"It really is quite staggering just how busy the market has been and testament to just what a great place Hertfordshire is to live.

"Its connectivity to the capital, excellent schooling, access to lots green space and plenty of lovely restaurants, pubs, cafes and boutique retailers ensures the county is a popular choice for a wide pool of buyers – something that’s been reflected in the high number of people continuing to register with us since the start of the year.”

And in St Albans at least there is hope for buyers: Rightmove named the city among its property supply hotspots earlier this week.