Suffolk Property Sales Yet to Recover From SDLT Hike
- House prices in Suffolk are 2.6% higher than one year before.
- Lowest June on record for sales volume, following SDLT changes.
- New builds were up 16% despite pre-existing homes up only 1%, YoY to April.
- West Suffolk is only 2% behind its record high of £311,626 in November 2022.
- Property prices across Suffolk are currently 3% behind the peak of Novemer 2022.
- Babergh remains the county's most expensive district to buy a home, 52% more costly than Ipswich.
- Kesgrave has the lowest crime rate and risk.
- East Suffolk has the greatest 10-year property price growth. Year-on-year, it's Babergh and Mid Suffolk.
- Across the East of England, house prices are expected to increase 18.5% over the 5 years to 2029 (Savills).
Are house prices going up in Suffolk?
Average house prices across Suffolk have grown 2.6% since the same time last year.
Average house prices in Suffolk peaked in November 2022 at £299,216 following the 'race-for-space', and are now just 3% below that peak. It is possible some or all Suffolk districts will break their highest price records next year, with each district currently 3-5% behind their respective peaks.
Worst June on record for volume of property sales in Suffolk
Only 597 property sales went through in the whole of Suffolk in June. For context, a 'normal' month would be 1,100. This was caused by the Stamp Duty Change, as everyone rushed to complete their purchases before the end of March, leaving a vacuum in April.
Sales volume for a single month has only ever been this low during lockdown, and in the years of and immediately after the 2008/2009 economic crash.
However, this data is published by the Land Registry with a three to four month delay. As we predicted, sales have been highly active across the country this summer, and we expect the data to reflect this as it catches up.
Rising inflation and affordability challenges will continue to limit movement in the property market. It is already slowing, as is typical at this time of year, and the next few months will depend on how confident consumers feel about the upcoming autumn budget.
Will there be a UK recession in 2025/6?
Bank of England policymaker Alan Taylor has warned that the UK economy is at a growing risk of “a bumpy landing”.
"..where inflation undershoots, and goes below target in late 2026, and the economy moves into a weakened state for a sustained period, with output and employment below potential, leading to undue damage to economic activity."
How does the Bank of England affect the Suffolk Housing Market?
Borrowing has been slowly returning to a more affordable level. The August cut to 4.00% means that mortgage rates are already lower, and the base rate may fall further in December if the November budget keeps the economy stable.
Prices steadily increase as borrowing costs fall, making purchases more affordable. Oxford Economics predicts the base rate will fall to 2.5% in 2027.
Are you thinking of buying or selling a property in Suffolk?
East Suffolk has the most active relative property market YoY
Sales volume across Suffolk is down 35% on last year, versus 38% for the country as a whole. East Suffolk is faring far better at only 18% down. West Suffolk (-37%), Ipswich (-40%), Mid-Suffolk (-46%), and Babergh (-48%) all have significantly quieter sales.
Are houses in Suffolk expensive?
Average property prices are just shy of the national average, but Babergh (£337,464), Mid Suffolk (£319,540), and West Suffolk (£306,345) are more expensive.
Where is the cheapest place to buy in Suffolk?
East Suffolk comes in almost bang on average at £289,827. But Ipswich is far more affordable at £222,170. Average house prices in Babergh are 52% more expensive than in Ipswich.
In the mid-priced districts, the order varies by type. For example, Property in Mid Suffolk is more expensive than in West Suffolk on average, but each property type in Mid Suffolk is cheaper than in West Suffolk.
Long-term Suffolk property market investment
Property prices in Suffolk are up 51% over ten years, vs 54% for the wider country. East Suffolk has the strongest long-term growth in the county at 53%.
Eastbourne property prices have the weakest Year-on-Year growth, and 10-year price growth.
New homes in East Sussex are now 54% more expensive than existing properties
New houses cost more. However, the gap has broken records for four consecutive months, reaching 46% in March, 49% in April, 50% in May, and most recently, 54% in June. More recent data is likely to show an ever steeper divide, as figures are released by the Land Registry.
Interestingly, other regions are being affected to greater extremes, with new builds in the North East an eye-watering 118% dearer than existing homes.
The average cost of a new build in Suffolk soared by 16% in 12 months.
This unprecedented increase is likely caused by increased building costs, developers building larger homes for greater profit margins, and the squeeze on available development land.
If you exclude newly-built properties, you can see that house prices in Suffolk have been fairly static for the past two years.
House prices may fall slightly over the winter, but if we see a return to the levels of growth predicted by Savills, winter 2025 is the perfect time to buy now that prices have stabilised, before they begin to climb again.
Where are the safest places to live in Suffolk?
Suffolk overall has a crime rate of 51 crimes per 1,000 residents, below the national average crime rate, which is 72. The most prevalent type is Violence and Sexual Offences, which is typical, and the crime rate for this type in Suffolk is lower than the national average.
The Crime Risk scores are calculated by taking severity of each crime type into account; the 5-year trend shows the crime risk down by 22 points, and over ten years it's down by 38 points.
Every type of crime has a lower rate in Suffolk compared to the UK average. Crime rates affect your insurance premiums and potential rental yield and may affect your peaceful enjoyment of the property.
Comparing Suffolk's larger towns and cities, and using Crime Risk Scores, Brandon is the most dangerous. The next most dangerous is Ipswich, and Bury St Edmunds comes in as third most dangerous. There are safer parts of Suffolk, identified using the same Crime Risk measurement, starting with Kesgrave which ranks as the safest area in Suffolk, followed up by Felixstowe in second place, and Carlton Colville in third place.
Source: CrimeRate
Should I buy a house in Suffolk?
Suffolk is a top choice for homeowners
- Proximity to Stanstead Airport.
- Peaceful, scenic countryside.
- Stunning coastline.
- The Suffolk Coast & Heaths Area of Outstanding Natural Beauty (AONB).
- Charming towns.
- Excellent Healthcare.
- Great transport links.
- Around 5% rental yields.
- Employment opportunities in diverse fields, with managers, directors, senior officials and professionals making up 45% of the Suffolk labour market
The cost of borrowing has fallen for the fifth time in August, and Suffolk property prices have rebalanced above pre-COVID levels. If you can afford to buy now and get on the ladder before house prices start to increase again, you'll likely be able to switch to an even more affordable mortgage rate in 2027; by this point, the value should have risen a few per cent, and you'll have built some equity by making your mortgage payments.
Across the East of England, house prices are expected to increase by 18.5% through 2025 to 2029
SavillsIf you are renting and can afford to buy at the current rate of interest, this may be a much more desirable option than saving for a bigger deposit, as rents are still rising, whereas mortgage rates are likely to fall.
However, if you are stretching your budget to buy or upsize, consider saving a bit longer or opting for a more affordable borough. If the base rate rises again, you may be unable to keep up with your monthly repayments when your fixed rate ends.
Worse yet, if prices fall, you could end up in negative equity, owing more money than your home is worth. Buying a home with a mortgage always comes with risks. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are ready to buy a house in Suffolk or the surrounding area, we can handle your purchase with a dedicated SAM Conveyancing Consultant to manage your transaction alongside one of our hand-selected panel solicitors.
October is overshadowed by a budget that threatens significant tax changes.
Andrew Boast FMAAT MIC | CEO and Author | SAM ConveyancingSources: Latest data from - Gov.UK, Bank of England, UK House Price Index, Savills.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Without Killing Anyone
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With more than two decades’ experience in the conveyancing sector and over 50,000 successful client moves under his belt, Andrew shares insider tips and advice to empower you as a buyer, giving you the tools to make the best decisions for your circumstances and ease the chaos.
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