The most recent data and analysis from KIS Housing has revealed that property prices in the North East have continued to decline.
During July, there was a 0.4% fall in prices, which has led to values slipping below those seen at the same period last year.
North-East Values
A typical property in the region is currently valued at £164,752, representing a month-on-month fall of £705 in cash terms. Prices are now 0.2% below the £165,039 seen in July 2016.
House prices in the region are now 1.8% down over the course of the year to date. The largest falls were seen in Durham City (-2.5%), Houghton-le-Spring (-1.5%) and Whitburn (-1.2%).
On the other hand, properties in Blyth, Jarrow and Whitburn have seen the strongest performances during the last 12 months. Prices in these regions have risen by 6%, 4.3% and 4.1% respectively.
Rents
Rents in the North East increased slightly during July, to £589 per calendar month.
Typical rental yields remain unchanged, with investors currently seeing an average return of 4.3%. North East property investors are continuing to see higher returns than lose investing in the capital, with the average yield in London at 3.2%.
Strong regions for rental yields include Gateshead (5.6%), Sunderland and Newcastle (5.1%).
Blyth is still the cheapest place to rent in the North East at £417pcm. This was followed by Seaham at £422pcm. At the other end of the scale, Tynemouth commanded the largest monthly rent, of £1,095pcm.
North East property prices continue to decline
Growth Over?
Ajay Jagota, founder and Managing Director of Keep it Simple and Dlighted, observed: ‘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.’[1]
[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-continue-to-reverse.html