Property prices in the North East have defied forecasts of a worsening UK economy to post their strongest month-on-month growth this year to date.
House values in the region rose by 1.9% during April, adding an average of £3,099 to the price of a typical property.
In March in February, prices slipped by 0.1% and in January, by 3.1%.
Values
Average regional property prices in the region are now 6% higher than 12 months ago, with the typical value standing at £9,591 greater than in April 2016.
An average North East home will currently set one back £166,566, in comparison to £163,467 at the end of March.
18 of 20 North East regions saw prices rise, with strong performances recorded in South Shields (5.4%), Blyth (4.7%) and Kilingworth and Easington (3.2%).
The only areas to see falls were Cramlington (-0.9%) and Jarrow (-0.3%.)
North East property prices continue to rise
Rents
In terms of rents, these rose by £585 in April-a rise of £9.
Increasing property prices have forced rental yields downward slightly. Property investors in the region are now seeing average returns of 4.2%.
Investors in the North East are continuing to see higher returns than those in London, where yields stand at 3.2% typically.
Good News
Ajay Jagota, founder and MD of Keep It Simple and Dlighted, said: ‘After three months of negative growth it’s very good news to see North East house prices making up lost ground over the past four weeks and in a markedly stronger position than twelve months ago, with prices the best part of £10,000 higher than this time last year.’[1]
‘The run up to a General Election generally means flat house prices as buyers and sellers adopt a ‘wait and see’ approach, and even though this election has come slightly out of the blue I’d expect to see the same thing happen in May and June, with prices moving forward again come the summer, a traditionally strong period.
Average asking prices for UK homes this week reached £313,000, all but double the North East average. When you combine that with historically low mortgage deals currently available for both owner-occupiers and investors, the North East remains a phenomenally good value location to make a home or invest in one,’ Jagota added.[1]
[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-rally-as-election-announced.html