District house prices above average increase

Data published by Nationwide Building Society last month showed that house prices in the district had increased by eight per cent in the final quarter of 2013, an increase from five per cent on the previous quarter. The rise, which compares to a national rise of 3.1 per cent for the same period, takes the average house price in the district to £280,943
Several estate agents locally have attributed the rise in part to the “topping out” of London prices which is causing former city dwellers to move to the countryside and commute.
And in December, Savills forecast West Berkshire to be one of the top performing urban areas outside of London for house price growth over the next five years.
Head of Newbury residential sales at Savills, Patrick Glynn-Jones, said: “London has had significant growth over the last 18 months to two years which has created an even greater gap between London property prices and country property prices.
“People in London are now thinking it’s time to make that move out west.
“Anywhere within an hour of London is going to attract the London commuter.
“Add to that good infrastructure and really, really good state and independant schools, these really drive the market.”
Partner at the Newbury Carter Jonas, Rupert Reeves, added: “If you want somewhere that has its own identity that’s not a suburb of London, Newbury is the first market town you come to.
“The prices here, although they have gone up, they are still a lot lower than they are further into London.
“It’s easily commutable, it’s more affordable and it’s a good place to live.”
Other factors such as low interest rates on borrowing and the Help to Buy scheme, which came into effect in April, are also considered to have helped drive the market forward.
“The number of buyers registering with us in the final quarter of last year was higher than it was in any other quarter last year...probably 10 per cent more,” said Mr Glynn-Jones. “That combined with the most competitive interest rates for some years, I think that’s driving people to buy.”
Last year, Newbury estate agent Jones Robinson reported a six-year high on property viewings, application numbers, offers and sales.
The firm’s co-director, Charles Robinson, said: “The demand has almost doubled but the supply has remained the same.
“It means the same for first time buyers as it does for everybody – everybody has got to pay more for property than they would have done a year or even six months ago.
“Buyers are very confident at the moment. There isn’t the concern that prices are going to fall so everybody wants to buy now to reduce the likelihood of having to pay more further down the line.”
He added that in December Jones Robinson properties were achieving around 103 per cent of their asking prices and that bidding wars had broken out in a number of cases with people desperate to get their dream home while they could afford it.
While agreeing that there was no immediate cause for urgent concern, Mr Robinson added: “One should always be cautious that the market could overheat and that’s not good for anybody.
“To see a market being tamed is a good thing for the longevity of the market and for a more robust market as opposed to one that’s fluctuating all the time.”