House prices in the North East fall further in February

House prices in the North East fall further in February

According to a new report, North East house prices have continued their slow start to 2016 - falling by a further 0.4% in February.

The data revealed that prices have now slipped by 3.5% over the first eight weeks of the year – wiping £5313 from the value of an average home in the region.

A typical North East home cost £158,184 at the end of February - £571 less than January.  Prices are nonetheless 8.5% and £13,312 higher than those recorded in the same period last year.

Several areas bucked the regional trend and saw prices rise – including Cramlington and Durham City (0.9%) , Washington (0.8%) and Peterlee and Gateshead (0.7%).

Blyth (-3%) saw the biggest drop, followed by South Shields (-1.6%) and Newcastle and Sunderland (-1.4%).

Whitley Bay has seen the biggest price rise over the past 12 months, recording a year-on-year increase in value of £14,003.

Prices in Blyth have dropped by 7.4% in the first two months of 2016 – making it this month’s Best Place to Buy.

43% of properties in Blyth are semi-detached (4% above the regional average), with a further 28% terraced (slightly below the regional average of 30%). 48% of properties have at least three bedrooms.

59% of homes are owner-occupied out-right, or with a mortgage – slightly below the regional average of 61%. 18% of homes are rented from registered social landlords or local authorities, 4% below the regional average. 12% of properties are rented privately, marginally below the regional average of 13%.


Rental Market Analysis

North East rents rose by £1 a week in February, rising from an average of £551 per calendar month four weeks ago to £555 today. Prices are £5 a month lower than in February 2015.

Blyth (£394) has replaced Easington (£425pcm) as the cheapest place to rent in the North East out of the areas surveyed, while Durham City (£818pcm) remains the most expensive.

Gateshead remains the region’s Buy to Let Capital, with an average return of 6.2% for investors. Other strong performers for rental yield include Peterlee (5.14%) and Newcastle and Seaham (4.8%)

Near flat house prices left rental yields unchanged at 4.2%.

The lowest rental yields continue to be found in Tynemouth where landlords can expect a 3.1% return on their investment.

Newcastle and Peterlee both saw investment returns rise by 0.3%, while yield in Morpeth rose 0.2% to leave investor returns 0.5% up over the first two months of the result – leading to the town being named this month’s Best to Invest.

28% of properties in the town are detached compared to a regional average of 16%. 19% of properties are occupied by two adults and one or two children, 17% by adults aged 16-64 with no children and 15% by single occupiers. 39% of properties have at least 3 bedrooms.
 
75% of properties are owner occupied – well above the regional average. Just 14% are socially rented, compared to 22% regionally.

Ajay Jagota, founder and Managing Director of local sales and lettings firm KIS Group, responded to the figures: “Blyth and Cramlington might be little more than four miles apart but the distance between house prices has changed by nearly 4% in just four weeks. It’s discoveries like that which show the real value of highly focussed geographical analysis like ours.

As estate agents you expect the first couple of months of the year to be amongst the quietest, and there are plenty of reasons why the regional property market has got off to a slow start to 2016 – not least the economic uncertainty in the air, which is likely to make buyers adopt a more cautious ‘wait and see’ stance.

As I was fortunate enough to get the opportunity to explain to BBC Breakfast this week, I am more and more erring towards voting towards a so-called Brexit in the EU Referendum, but that’s not to say that in the short term a significant amount of people are putting off buying a property until after June’s vote.

We’re still seeing a significantly more positive outlook for North East property than this time last year – only this week we saw the Housing and Communities Association report that housing completions in the region rose 25% last year, the highest percentage in the UK outside of London.”

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Comments

  1. Agent_PeeBeeAgent_PeeBee03 March 2016 14:56:00

    Please advise as to the details of this "new report". Where can I find it? Who is the author? Where does the dataset used to provide the statistics come from? What validation process has the dataset and the 'report' been subjected to? I look forward to the response.

    Reply to this comment

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Latest Comments

AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

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AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

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CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

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Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

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property guru
property guru 11 Jul 2016

Why should Ajay even have to be looking for it. It should be public knowledge. Why is not just publish each years and to were it is and be AUDITED. Accountability.

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property guru
property guru 11 Jul 2016

Surprise suprise

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CommercialTrust
CommercialTrust 30 Jun 2016

This is great news for buyers and investors in a period of significant uncertainty. The 10-year buy-to-let fix at 3.99% in particular is excellent, a clear 100 bps ahead of the nearest competition. Though...

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Lee
Lee 30 Jun 2016

Let's see what happens to north-east property prices when Nissan announce they're leaving.

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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