Freeport East could boost house prices in Felixstowe and Harwich
New research shows Freeport could boost local housing market.
Data from the estate agent comparison site GetAgent.co.uk shows that the new Freeport at Felixstowe and Harwich could benefit local housing prices.
Rishi Sunak confirmed in last week's budget that plans for a Freeport in the East had been approved.
It's been looking at data from housing markets surrounding historic Freeport's across the UK and has found in all cases that the cost of an average home in all the areas went up during the time the zone was in operation.
Based on the findings at the seven historic sites, GetAgent suggests that the average house price in East Suffolk and Tendring could go up by around 13% a year.
That's an average increase of £32,404 a year, based on the current average house price of £250,384.
Founder and CEO of GetAgent.co.uk, Colby Short, commented: "Freeports can be a controversial topic and many critics believe they fail to boost employment and can often be dominated by big businesses in the area, bringing little benefit to the wider local community.
"However, purely from a property market standpoint, they do seem to bring about a great benefit for local homeowners, with house prices enjoying robust growth while they're operational.
"Generally speaking, properties can be less desirable in areas home to industrial ports and airports and therefore they often command a lower price than the wider areas they sit within. So no doubt those living within areas due to benefit from a new freeport will warmly welcome their return."
What is a Freeport?
Usually located around shipping ports or airports, freeports allow goods to arrive from abroad which only incur taxes if they leave the designated freeport area.
The UK has previously had seven freeports in operation between 1984 and 2012 and while they have their critics, the research by GetAgent shows that their benefit to the wider housing market is clear, at least.