Posts with tag: North East property

North East property prices continue to decline

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

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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

 

 

North East property prices steady before election

Published On: June 6, 2017 at 8:47 am

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The most recent analysis from Keep It Simple has revealed that property prices in the North East have remained almost unchanged in the run up to the General Election.

Data from the report shows that prices in the region fell by only 0.2% over the course of the last month.

North East Property

A typical property in the North East region is valued at £166,125 – £441 less than at the end of April. House price values in the area had risen by 1.9% in April, after sliding by 0.1% in both February and March.

Average regional property values are 5.8% greater than they were last year, with the typical property value £9,150 greater in May 2017 than 2016.

8 of the 20 regions covered by the report experienced price rises – with strong performances recorded in Easington, Peterlee and Houghton-le-Spring. Prices in these regions rose by 2.2%, 1.6% and 1.5% respectively.

Rent Falls

Rents in the North East dropped to an average of £576 pcm in May – a fall of just £9. What’s more, these values are just £2 per month lower than in May 2016.

Rental yields remain unchanged, with investors in the region continuing to enjoy returns of 4.2%. This is higher than the average yield recorded in London, which presently stands at 3.2%.

Easington is the cheapest place to rent in the region, at just £385 per month. On the other end of the scale, Tynemouth is the most expensive, with rents here averaging at £1125pcm.

North East property prices steady before election

North East property prices steady before election

Waiting Game

Ajay Jagota, founder and Managing Director of Keep It Simple, observed: ‘I predicted four weeks ago was that we would see little change in house prices this month with both buyers and sellers adopting a ‘wait and see’ outlook ahead of next week’s General Election – and so it has proved.’

‘What will be fascinating to see is whether this week’s result releases some pent up energy, pushing prices up. This is certainly what happened in 2015, when North East property prices rose by 4.8% in the two months after the General Election,’ he continued.[1]

Assessing the impact of the election, Mr Jagota said: ‘A hung Parliament or slim majority could have the opposite effect, but what’s really striking about our figures is how resilient they show the North East property market to have been over the past 12 months, despite the uncertainty of Brexit and another General Election.’

‘Prices are currently almost 6% higher than they were twelve months ago, adding more than £9000 to the value of the average property. In the case of Blyth, it’s nearly 13% and £15,000 higher.’

‘With rents practically unchanged in the same period, dare I say that the North East property market is strong and stable – good news for both the many and the few,’ he continued.[1]

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-strong-and-steady.html

 

 

[1]

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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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 rents rise over £600pcm

Published On: September 7, 2016 at 9:02 am

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Categories: Property News

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New analysis has revealed that that average rents in the North East have gone above the £600 mark for the first time.

The report from sales and lettings firm KIS also shows that the typical rental yield in the area is now a record 4.6%.

Seasonal slowdown

In addition, further data from the report indicates that a summer slowdown in house prices in the North East saw values fall by an average of 2.3% per month in July and August.

This means that the average North East property is now valued at £157,438. Property values slipped in all of the twenty areas surveyed, with the exception of Whitburn.

Areas that saw the most sharp declines were Durham City, where prices fell by 4.2%, Houghton-le-Spring (3.7%) and Darlington (3.5%).

The regional fall in property prices is in conflict with a rise of 5.2% recorded at the same period last year. In 2015, prices actually increased by 3.8% in July and by 1.8% in August. In addition, the typical house price in the North East is presently 3.8% lower than in August of 2015.

Rising rents

North East rents continued to increase by around £10 pcm across the summer, reaching £610. This is the first time rents have exceeded £600 since records began. What’s more, rents have increased by 7.4% from the £565 recorded since the beginning of August.

Blyth is still the cheapest place to rent, with typical costs of £397 pcm. At the other end of the scale, Tynemouth is most expensive, with rents of £1125 per month.

The regions ‘Buy-to-Let capital’ is Peterelee, where investors can expect rental yields of 6.1%. Other strong performers are Gateshead and Killingworth (5.9%) and Sunderland (5.3%).

Falling property prices have seen the average North East rental return rise to 4.6% over the course of the summer months.

North East rents rise over £600pcm

North East rents rise over £600pcm

Strong

Ajay Jagota, founder and MD of KIS, observed, ‘the current strong performance of the North East rental market is no surprise to us here at KIS where we saw a 15% year-on-year rise in transactions in July, with August continuing that trend. There’s a hypothesis to be made that the Brexit vote has strengthened the rental sector while slowing growth in residential sales as people put off making long-term decisions like buying houses, but it’s important to remember that regional house prices are essentially unchanged since the vote, a clear sign that some of the more apocalyptic predictions have not even come close to coming true.’[1]

‘There can be no question that rising demand for properties has taken average rents above £600 a month for the first time. Obviously renters will not want to see this, but this rise is broadly in line with inflation and of course rents in our region remain close to 20% lower than the national average. From a landlords perspective there couldn’t be a better time to invest with strong rental demand and rental yields in the North East at an all-time high and property values dipping slightly following a period of consistent capital

[1] http://www.propertyreporter.co.uk/landlords/north-east-rents-go-above-600pcm-for-the-first-time.html