NORTH EAST HOUSE PRICES CONTINUE TO REVERSE

The latest data and analysis from KIS Housing has shown that property prices in the North East have continued to reverse in slow motion, with a fall of 0.4% over the past four weeks seeing prices slip below those of twelve months ago.

According to the report, a typical property in the region is currently valued at £164,752 -– a month-on-month drop of £705 in cash terms. Prices are now 0.2% below than the £165,039 recorded in July 2016.

House values in the region are now 1.8% down over the course of 2017, having fallen in January, March, May, June and now July. Just 3 of the 20 areas surveyed saw prices rise, Cramlington (1.4%) Killingworth (1.2%) and Washington (0.2%)

Durham City (-2.5%) Houghton-le-Spring (-1.5%) and Whitburn (-1.2%) saw the largest drops, with most areas recording losses equivilant to a fraction of one percent. House prices in Blyth, Jarrow and Whitburn continue to have performed the strongest over the past 12 months, rising by 6% and 4.3% and 4.1% respectively. Prices have fallen the most in Durham City (-4.8%) and Peterlee (-4.1%).

Rental Market Analysis

North East rents rose slightly to £589 per calendar month – with levels the same as those recorded 12 months ago.

Average rental yields are unchanged,  with property investors currently seeing an average return on their investment of 4.3%. Investors in North East property continue to see noticably higher returns than those who have invested in London (average yield 3.2)

Blyth (£417) continues to be cheapest place to rent in the North East out of the areas surveyed, followed by Seaham (£422). Tynemouth (£1095pcm) is this month’s most expensive in general terms. Peterlee is once again the region’s Buy to Let Capital, with an average return of 6.2% for investors. Other strong performers for rental yield include Gateshead (5.6%) and Sunderland, Easington and Newcastle (5.1%)

Ajay Jagota, founder and Managing Director of Keep It Simple and Dlighted, said: “These figures would suggest that the North East’s prolonged period of house price growth is over – for a month at least. It will be fascinating to see next month- with August a traditionally strong month for the housing market – whether this is a trend or a blip.

The driving force for North East house prices reversing in slow motion like this. is the ‘wait and see’ outlook both buyers and sellers have adopted in light of ongoing economic and political uncertainty. Ironically, prices have become very stable as a result - if they are looking for certainty is exactly what they have created with yields unchanged over a month, rents unchanged over a year and house prices on a plateau – albeit one with a modest downward gradient.

In the face of a good deal of upheaval, its extraordinarily impressive how strong house price growth has been in some areas over the past 12 months – noticeably Blyth and Jarrow”