HOME EDITION
Historically, Cambridge and its surrounding towns have remained resilient 5-10% by value in each region. In the East of England, mainstream house prices are expected to fall by 11% in 2023 – recovering to rise by 15.7% between 2024 and 2027. In the prime markets, house prices in the East of England are expected to fall by around 6% next year – rising by 16.5% between 2024 and 2027. THE CAMBRIDGE BUBBLE But the property market in our area has a habit for bucking regional and national market trends. Could the Cambridge bubble be about to burst? Ed Meyer, head of residential sales at Savills, assures us that the local market appears to be staying strong. “We’re certainly starting to see a bit of change; levels of activity aren’t the same as we were experiencing at the beginning of the year,” he asserts. “However, historically Cambridge and its surrounding towns and villages have remained remarkably resilient. The lifestyle factors that draw people to the area will not change and – crucially – there continues to be huge investment in the city to attract new business. People will continue to move here for employment opportunities and there remains a shortage of supply that I think will underpin prices to some extent. Consequently, I think we will continue to see competition for ‘best in class’ houses across the board. “That said, sellers do need to be realistic,” continues Ed. “Rising interest rates and increases in the cost of living are impacting buyers’ budgets, so setting a sensible guide price will be key to maintaining momentum.” For anyone looking to buy or sell in the year ahead, getting your finances in order will also be key to securing your next home in Cambridge: “If you need a mortgage to fund a purchase, then having an agreement in principle will be important,” Ed urges. “It would be wise to take advice on the type of mortgage that’s appropriate; for example, several buyers are currently looking at a tracker rate mortgage for the first part of next year with a view to fixing a longer- term rate when interest rates stabilise.”
JANUARY 2023 67
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