North East house price rise gains momentum

North East house price rise gains momentum

According to the latest figures, the North East property market’s Indian Summer continues apace, with house prices in the region rising by 3% in October.

The rise follows a 1.7% rise in September and wipes out a corresponding fall of 4.6% recorded in July and August. The growth adds £5070 to the value of an average home – £7711 over the course of the last eight weeks - taking the value of a typical property to £165,148. House prices rose in all 20 of the areas surveyed, with value growth ranging from 6.5% in Cramlington to 0.6% in Easington. Cramlington also recorded September’s largest rise with property values now 10.6% higher than the end of August.

Other above average rises were recorded in Tynemouth (4.3%), North Shields (4.2%) and Whitburn (4.1%).

By contrast, North East house prices fell in October 2015, albeit by a fraction of one percent.

North Shields (5.2%) overtakes Tynemouth (4.9%) as boasting the fastest over the past 12 months, with home values 4.9% higher now than they were in October 2015.With monthly growth of 4.2% North Shields is also named this month’s Best to Buy”.


Rental Market Analysis

The average North East rent rose slightly to £586 in October – a rise equivalent to £1.50 a week. Easington (£389) is this month’s cheapest place to rent in the North East out of the areas surveyed, with Tynemouth (£935) continuing to be the most expensive.

Peterlee continues to be the region’s Buy to Let capital, offering rental yields of 6.3% to investors – a rise of 0.1% from last month. Other strong performers continue to be Killingworth (5.4%) Gateshead and Newcastle (5.2%) and Seaham (4.8%).

Landlords in Whitley Bay and Darlington however can expect to see returns on their investment of just 3.5%. The rising property prices mean the average North East rental yield falls back to 4.3%– a drop of 0.1%. Killingworth’s low price growth and strong rental yield see it capture this month’s “Best to Invest” crown.

Ajay Jagota, founder and Managing Director of North-East based sales and lettings firm KIS, had this to say: “In the week of Halloween these figures are definitely a treat rather than a trick for North East property owners. You would traditionally expect to see house prices grow in sun of summer and fall back as Christmas approaches - but this year the opposite has been true in the North East rising almost 5% as we move towards the end of the year.

It’s particularly interesting that so much of that growth has been driven by the north of the Tyne with growth in places like Cramlington, Tynemouth and North Shields in and around 4%, compared to just 0.5% in Easington and Peterlee. Analysts JLL this week predicted that North East homes will fall in value in 2017 and remain ‘subdued’ until at least 2020, but with year-on-year growth of 3.7% this year that’s far from reality on the ground, for now at least.”

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Comments

  1. Agent_PeeBeeAgent_PeeBee07 November 2016 16:23:33

    Any reason why my comment to this 'article' has not been published?

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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