The average price of a house in the South West is higher than anywhere in the UK outside of London and the South East and has continued to rise in Q3 2014, according to the latest Regional Land report from leading property advisers CBRE.
Off the back of 11% growth in the third quarter of the year, an increase of 1% from the previous quarter, CBRE estimates the average price of a house in the South West to be £207,420, over £20k more than that of the UK as a whole (£186,544). This upward trajectory is predicted to continue, with CBRE forecasting house prices in the region to rise by as much as 30% over the next five years.
Guy Mansfield, Head of National Land & Development at CBRE Bristol, commented: “Our report backs up what many estate agents have been saying – that the property market in the South West is one of the most buoyant in the country and there is a real demand out there from buyers.
“However, it is important that property remains affordable and within reach of the average working person. If we want the economy to continue to grow and flourish then we need a healthy property market that offers affordable housing suitable for all levels of income.”
CBRE has reported that the development market is gathering significant momentum across the South West, with an increasing number of schemes coming though the planning system and starting construction. The firm says this upswing in activity has led to increased competition for the best sites across the region and that the scarcity of available sites is driving up land values.
Jennet Siebrits, Head of Residential Research at CBRE, said: “We anticipate sustained demand across the traditional regional housing markets into 2015, but regional price inflation is likely to soften compared to 2014 price performance. We also expect the prime and near-prime market in 2015 to remain strong, with secondary land values beginning to level off as regional house price and wage inflation put the squeeze on developer profit margins.”
CBRE’s report also highlights that planning policy has played an important part in increasing the volume of city centre development sites in the South West, with this market dominated by well-funded property companies and student operators seeking direct let opportunities.
Pictured above: Guy Mansfield of CBRE Bristol