Fears about overheating housing market as house prices rise by 9% in East of England

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House prices in the East of England have risen by more than 9% in a year which is the largest annual increase since 2007.

Prices were rising in all parts of the ITV Anglia region in the year to March 2021 although there were large variations. In parts of Suffolk the cost of houses has increased by more than 17% in a year while in the Welwyn Hatfield area of Hertfordshire, the rise was just 0.1%.

The latest figures, released by the Office of National Statistics and the Land Registry, revealed that the average house price in the East of England in March 2021 was £315,000. That was an increase of nearly £27,000 or up by 9.4%.

The most expensive houses in the East of England are in St Albans in Hertfordshire where the average property would set you back more than £500,000.

In contrast, the lowest prices are found in the seaside resort of Great Yarmouth in Norfolk where the average price is £184,000.

Interactive map showing house prices in each area of the ITV Anglia region in March 2021 with the annual percentage increases

The darker shading on the map indicates the largest annual price increases and the lightest areas of shading show the smallest increases

The Office for National Statistics said: "The latter half of 2020 saw the UK’s average house price growth accelerating. This trend has continued into the beginning of 2021, reaching an annual growth rate of 10.2% in March 2021.

"The pandemic may have caused house buyers to reassess their housing preferences. 

"Changes in the tax paid on housing transactions may have allowed sellers to request higher prices as the buyers’ overall costs are reduced."