It’s been a buyer’s market here in Norfolk for the past two years - make no mistake.
Prices have consistently fallen - in some places, way beyond the 1-4% quoted by statisticians – as the sea of reductions on Rightmove clearly shows, let alone actual, achieved sale prices.
At the top of the market, on properties over £2m deals are being done with £250,000+ off asking/guide prices: 10% & in some cases, more, as the “mansion tax” spectre looms large (starting in April 2028, owners of residential properties in England worth over £2 million will pay an annual High Value Council Tax Surcharge ranging from £2,500 to £7,500 on top of their standard council tax, FYI).
All of this has made for some very unhappy sellers & some very lucky buyers. That’s market forces…
But will this price correction continue? Or are estate agents & sellers finally aligning with the market prices buyer’s are expecting to pay?
The key question… have we hit the bottom of the market yet, or is there still room for further reductions?
Anyone who says they know for sure - is lying.
Property prices are subjective & prone to so many factors - not least the strength of human will power & we all know how irrational that is. And with the national & international markets being in such a state of flux & under such duress, nobody knows for sure if we are at the bottom, or there’s still more to drop…
As any (honest) estate agent will tell you: valuations are not an exact science, are currently “all over the place” as one recently said to me & even good pricing advice can still be ignored by stubborn vendors.
Some prices you see on the market are set by delusional agents, wishing it was 2021 ‘shooting fish in a barrel/best & finals’ time & others are set by pragmatists, with their finger on the pulse of the market & its true sale values. Others are set by realistic vendors, whilst some are set by belligerent ones… creating massive anomalies.
It’s chaos out there.
So is the UK housing market at the bottom yet?
We should say no: we aren't quite at the absolute base trough just yet, but we are easing much closer to a soft plateau, than a sharp plunge or gradual falls we have been seeing.
Rather than a sudden market crash, the UK property landscape is navigating a slow, multi-year-on-year consolidation. Persistent borrowing costs – with average mortgage rates expected to remain around 5% into 2028 – continue to cap rapid buyer momentum.
But buyers are still busy buying, believe me!
Motivated, smart buyers are picking up good stock, at low-for-area prices, from “motivated sellers” - mainly the three Ds’: divorces, deaths & debt, people who need to off-load.
So, opportunity is there for brave market speculators & we have helped a few get outstandingly good homes, at very, very good prices in the past two years.
Market analysts we speak to expect national prices to drift sideways to slightly down – by another 0.5% to 1.5% through 2027 – before a firmer recovery takes hold in 2028.
But, crucially, the heavy price drops are largely behind us.
But what does this mean for us here in Norfolk?
Norfolk highlights a clear regional split.
Premium, higher-priced pockets like North Norfolk remain under slight downward pressure, with prices easing 3% to 4% annually as rate-sensitive buyers pull back. And the reality for sellers over £2m is it’s a very harsh place to operate – with 10% being an expected ‘hit.’
But we expect these areas to super-heat quickly, when the sellers expectations Vs buyers offers align across the portals & market, which is happening already.
Conversely, more affordable spots like West Norfolk and Mid-Norfolk towns (such as Dereham & Great Yarmouth) actually continue to see stable or modestly rising prices due to steady local demand & stronger relative value.
For buyers eyeing up a country pile, the main advantage over the next 12 months won't be dramatic price collapses. Instead, it lies in low competition (for now!) & significant room to negotiate with motivated sellers.
All of which means, seller or buyer, you need someone in your corner who knows what they are doing, has their finger on the pulse of the market & is there to represent you, with good, honest, sensible advice…
