Posts with tag: North East

North East property prices continue to decline

Published On: August 4, 2017 at 9:58 am

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Categories: Property News

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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

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

 

 

Rents in Tyne and Wear are rising

Published On: May 12, 2017 at 11:54 am

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Categories: Landlord News

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Recent data released by North-East based property firm KIS reveals that the average monthly cost of renting a property on the Metro Map in the region is £596.

This is £25 more expensive than in December.

Regional Rents

Data from the research shows that Tynemouth is the most expensive place in which to rent in the region, outside of central Newcastle. Rents here total £1,192 per month on average, followed by South Gosforth (£828) and Ilford Road (£762).

On the other hand, Tyne Dock in South Tyneside was the cheapest place to rent, at just £400pcm. This was followed by Hadrian Road and Percy Main, where rents stand at £425pcm and £435pcm respectively.

The full Map reveals the average cost of renting a two-bedroom property within half of mile of each of the region’s 60 Metro stations.

Research from KIS shows that excluding central Newcastle, the top five most expensive regions in which to rent in Tyne and Wear per calendar month are:

  • Tynemouth -£1192
  • South Gosforth -£828
  • Ilford Road-£762
  • Jesmond – £741
  • West Jesmond – £737

On the other hand, the five cheapest regions were found to be:

  • Tyne Dock – £400
  • Hadrian Road – £425
  • Percy Main-£ 435
  • Hebburn – £437
  • Jarrow – £454
Rents in Tyne and Wear are rising

Rents in Tyne and Wear are rising

Strength

Ajay Jagota, founder of sales and lettings firm KIS, observed: ‘It’s always fascinating to see this information laid out like this as it really brings it home to you that, for example, a  three minute Metro ride from East Boldon to Brockley Whins saves you almost £1700 a year – the cost of a summer holiday or a significant saving towards a deposit on a house.’[1]

‘Even though these figures are recorded out of curiosity rather than serious analysis, they do showcase the current strength of the North East rental market. Figures this week show that rents in London are falling for the first time since 2009, but on the basis of these figures that is not the case in Tyne and Wear with average rents rising between December and May,’ he continued.[1]

Concluding, Mr Jagota said: ‘As rents rise though, so do tenancy deposits and these figures show indicate that if you want to rent a property on the Metro Map you’ll have to find almost £900 on average for a deposit – and possibly as much as £1800. This money too would surely be better spent on something else.’[1]

[1] http://www.propertyreporter.co.uk/landlords/tyne-and-wear-rents-on-the-rise.html

 

North East property prices continue to rise

Published On: May 4, 2017 at 11:29 am

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Categories: Property News

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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

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

 

North East property prices remain fairly static

Published On: March 31, 2017 at 9:58 am

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Categories: Property News

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The latest property market analysis from KIS Housing has revealed that house prices in the North East stayed almost static for the second-consecutive month.

Average regional property values are just 0.1% down over the last four weeks, with prices nearly similar to one year ago. Values are only 0.07% lower than in March 2016. In cash terms, this is a difference of just £124.

Similarity

In fact, across the region, prices remained more-or-less the same to four weeks ago, sliding by only 0.1% or £307 in cash terms. This is in comparison to a rise of 0.1% in February but a fall of 3.1% in January.

At presently, a typical North East home will cost £163,467-compared to £163,591 at the end of March 2016.

By area, there was more noticeable rises in Blyth, Washington and Gateshead and Morpeth, with values here increasing by 2.9%, 1.3% and 1% respectively.

Rents

North East rents fell slightly to £576 in March, a fall of 2.2%.

Yields remain unchanged, with investors enjoying an average return of 4.3%. This means that North East investors are enjoying a better return than those in London (3.2%) and Cambridge (2.3%).

The cheapest place to rent in the North East is Easington, where one can expect to pay an average of £351 per month. Tynemouth was the most expensive in general terms, at £892pcm.

Peterlee was found once again to be the buy-to-let capital, with an average return of 6% for investors.

North East property prices remain fairly static

North East property prices remain fairly static

Fascinating

Ajay Jagota, founder and MD of Keep it Simple, said: ‘Last month I attributed frozen North East house prices to buyers and sellers alike adopting a wait-and-see approach in the run up to the triggering of Article 50-and I see no reason to revise that opinion this month.’[1]

‘With Theresa May taking that step this very week, it will be fascinating to see if we see more profound movement one way of the other in the weeks ahead.’

Some analysts have noted a growing North-South divide returning to the UK property market, with the North East lagging behind the rest of the country. These results, with prices falling as a whole and falling much more conspicuously in places like Peterlee and Easington do nothing to disprove that theory,’ he continued.[1]

Concluding, Jagota said: ‘But this doesn’t have to be gloomy news. What’s really positive for property in our region is quite how resilient and robust North East house prices have remained in the face of so much uncertainty and upheaval over the past 12 months, changing by little over £100.’[1]

 

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-static-for-second-consecutive-month.html

 

North East property prices stagnant in February

Published On: March 2, 2017 at 12:22 pm

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Categories: Property News

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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

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

 

North East property prices see slow start to the year

Published On: February 2, 2017 at 11:20 am

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Categories: Property News

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Latest data released by KIS Housing has shown that North East property prices have had a rocky start to 2017. Prices in the region have fallen by 3.1% in the first four weeks of the year.

This means that the average costs of a home in the North East currently stands £5,200 less than at the beginning of 2017.

North-East Prices

At present, a home in the North East will set you back £163,591, which is 5% higher than the £158,755 recorded in January 2016. Interestingly, the price fall recorded last year is identical to the one seen last month.

The most prominent falls were found in Houghton-le-Spring (-6%), Killingworth (-5.5%) and Morpeth (-5.1%).

Properties in Killingworth have performed best over the period, currently 6.4% higher than those seen in January 2016.

Rental Rises

Rents in the North East increased to £584 in January, £32 or 5% higher than the same time last year.

Despite house prices falling, rental yields rose slightly by 0.1%, increasing the average North East rental yield to 4.3%.

The cheapest place to rent in the North East is Jarrow, while Durham City is the most expensive.

Peterlee offers the highest yields, with investors enjoying an average return of 6.1%. Other good performers were Newcastle (5.7%), Gateshead (5.6%) and Seaham (4.9%).

North East property prices see slow start to the year

North East property prices see slow start to the year

January Blues

Ajay Jagota, founder and MD of KIS Group, noted: ‘January is the time when people tend to view a lot of properties, having made a New Year Resolution to move home, but the actually buying tends to come later. As such we would expect to see house prices fall back at this time of year – not least as they fell by exactly the same amount in January last year!’[1]

‘It’s also been a particularly cold and dark month, which has doubtless discouraged a lot of people from house-hunting. The long-term trend for property values in the North East is incremental, sustainable growth – as shown by the year-on-year rise in values of 5%, which in places like Killingworth and Cramlington has added close to £1000 a month to house prices. There’s increasing evidence that investors are turning away from London and looking north. Increased investor demand may increasingly impact on North East property prices in 2017, for the first time since the early 2000s,’ he added.[1]

Concluding, Jagota said: ‘It’s been claimed this week that demand for rental properties is at a two-year low, but that’s not something we’ve much evidence of in the North East, where rising rents and returns for investors indicate strong demand. Certainly the most eye-catching fact about the state of the residential renting market in the North East is the fact that for the first time landlords in Newcastle are currently getting a better return on their investment than those in Gateshead.’[1]

[1] http://www.propertyreporter.co.uk/property/north-east-property-sees-a-bumpy-start-to-2017.html