The third largest regional economy in Britain, East Anglia covers a large area including Suffolk, Norfolk, Cambridgeshire, east Bedfordshire and north Essex. Much of the region is still rural and mainly agricultural, however it has also become one of the prime investment regions for high-tech industries and scientific research and development, mainly thanks to links with Cambridge University. Continued expansion of these industries is expected to boost demand for housing and the local economy.
Beautiful and with large areas that are under-populated, East Anglia has proved a hit with those wanting a permanent or weekend escape from London. The region often tops quality-of-life polls but market values have remained lower than other south-east areas. Though country property sales are high in the region, the main market is second homes.
Poor road and transport connections kept much of Norfolk and Suffolk isolated for a long time, but better infrastructure has opened it up. The largest towns in the region are Luton, Norwich, Cambridge, a commercial and educational hub, Colchester and Ipswich, which is undergoing a lot of regeneration. In addition, the M11 corridor to the east will see substantial growth under the government's proposed development scheme.
Types of property
Norwich offers studios and one-bedroom apartments from around £70,000, with small new and Victorian terraced houses starting from around £100,000 with more choice around the £170,000 to £200,000 mark. Meanwhile, upmarket city-centre apartments, bungalows and larger family homes will set you back around £250,000 - with detached country houses, suburban executive homes and rural conversions costing from £480,000 up to several million.
Cambridge and surrounding areas offers a mix of property ranging from one-bedroom flats in less-popular areas for around £100,000, standard, three-bedroom houses starting at around £300,000, rising to over £3 million for smaller country properties with land.
Average flats start at around £65,000 for one-bedroom, and two-bedroom properties are priced in the region of £130,000. Expect to pay around £150,000 for a three-bedroom family home, and from £250,000 for a detached four-bedroom pad. The new waterfront development will be priced from around £100,000.
Luton offers older flats and conversions from around £60,000. Terraced houses and semi-detached properties sell from £145,000. Larger family homes start from around £250,000.
One-bedroom conversions or older apartments in Colchester cost around £80,000, while semis and new-build family homes are in the region of £150,000. Expect to pay about £230,000 for newer two-bedroom apartments and larger family semis or bungalows, and around £400,000 for four-bedroom detached and larger village properties. Rural cottages in need of work are on the market for £200,000, while larger properties in good condition command upwards of £300,000.
Investment potential
According to Hometrack, the average house price in East Anglia is currently £155,900. Knight Frank predicts the east will be one of the strongest regional housing markets in the UK. New home prices have grown faster in this region than any other in recent years.
Interest from London investors in attractive rural property keeps prices high in areas with good connections from the city. Knight Frank estimates that country homes will continue to see growth of around four percent. The most competition is for homes in the £1.5 to £2 million price bracket, reflecting the attraction of such property to City buyers.
Property in Norwich and Cambridge offers options for buy-to-let due to the number of students in the city. As does Luton and Ipswich, though on a smaller scale. Ipswich was almost a backwater until a new programme of regeneration created yuppie apartments on the revamped marina. It has some of the lowest rental yields in the region with returns of around 3.8 per cent -the same as Cambridge.
Knight Frank claims that average rents in the region range from two per cent in north Essex to four per cent in Norwich, and almost five per cent in popular and well-connected market towns such as Bury St Edmunds.
Popular buying locations
Cambridge is currently one of the fastest growing cities in the UK, thanks to its new high-tech industries. As a result the population is set to increase by up to 33 per cent by 2021, and a number of improvement packages in and around the city are to be launched. Nearby St Neots is another hot spot with a middle/professional class population and good commuter links to London.
Norwich, a beautiful and historic city, boasts a large market and cathedral. While it's a creative and cultural town, thanks to the highly regarded university, it remains leafy with large areas of parkland, posh suburbs and relatively easy access to the coast. North Norfolk is a popular second home market with wealthy weekenders.
Haverhill is drawing an increasing population because of its good transport connections and the possibility it will benefit from new infrastructure linked to the 2012 Olympics.
Up-and-coming areas
Several deprived areas such as Harwich and Tilbury, the seaside resort of Great Yarmouth, Southend, Luton's inner city and even areas of generally prosperous Norwich have been targeted by the East of England Development Agency for regeneration.
Ipswich, because of its good transport connections and underdeveloped housing and commercial markets is seen as a prime and priority area for regeneration. New industry in the town is keen to extend links with similar ventures in Cambridge. A growing student population is expected to look to buy and rent here, the employment market is expected to grow substantially in this region and over 15,000 new homes are planned locally.
With thanks to BuyAssociation.
