New analysis from North East based property firm KIS has shown that property prices in the region have been largely unchanged in the last four weeks.
Prices increased by just 0.1% or £203 in cash terms.
Steady
This is in comparison to a fall of 3.1% in January, which saw £5,200 taken of the value of a typical North East property. Now, a typical property in the region will cost £163,794-4.3% greater and £5,609 more than figures seen in February 2016.
Seaham (1.7%), Whitburn (1.5%) and Darlington (1.4%) saw above average rises in house values. However, nine out of twenty areas surveyed prices fall, including Blyth (-2.9%), Houghton-le-Spring (-1.2%) and Peterlee (-1.1%).
Year-on-year, Killingworth leads the way for property price growth, with values 6.9% greater than in 2016. Other strong performers included Tynemouth (6.8%) and North Shields (6.2%).
Rents
North East rents increased slightly to £589 in the last month, a rise of just £3 in the last four weeks. Year-on-year, rents are £34 higher on average-6.1% more.
Rental yields stayed the same, with landlords receiving an average return of 4.3% on their investment.
Investors in the North East are seeing returns 25% greater than in London and almost double than those in Cambridge. Blyth is the cheapest place to rent in the region, at £418pcm, while Tynemouth is most expensive (£993pcm).
North East property prices stagnant in February
Waiting Game
Ajay Jagota, founder and Managing Director of sales and lettings firm KIS Group, noted: ‘With a budget just around the corner and the government intending to trigger Article 50 at the end of March it’s pretty predictable property buyers and sellers alike are adopting a ‘wait and see’ approach for the time being.’[1]
‘It’s fascinating that although house prices across the region were static as a whole house prices behaved markedly differently in the different halves of our region. With the exception of Blyth, prices followed the regional trend of stability North of the Tyne. In the South, there was a lot more volatility – with property values noticeably exceeding regional growth in places like Seaham, Whitburn and Darlington, but bucking the North East trend by falling in Houghton-le-Spring and Peterlee,’ he continued.[1]
Concluding, Jagota said: ‘From a buy to let perspective, the North East continues to perform strongly, offering returns for investors which are on average 25% higher than London, and as good as twice as strong as perceived investor hotspots like Cambridge.’[1]
[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-remain-flat-in-february.html