South Tyneside in housing market boom after a post-lockdown surge, says South shields estate agent

Andrew McLean insists it is ‘sell, sell, sell’ – with top prices being hit and little room for buyers to negotiate downwards.

He says all locations are benefiting from house-hunters shaking off the stay-indoors blues to snap up their dream properties.

But he warns the super-fast upturn may be a short-lived bubble – with potential Covid-related job losses a cloud on an otherwise sunny horizon.

And he fears mortgage lenders may be starting to ask for higher deposits to safeguard themselves should negative equity strike amid a price slump.

Overall, his positive outlook confirms the findings of a national survey which shows house prices rose by 2% in August.

Mr McLean, 66, owner of Andrew McLean Estate Agents in Burrow Street, South Shields, said: “There’s been a boom.

“Prices have been pushed up post-lockdown because so many people are wanting to buy, it’s fired up the market.

“If a property is properly priced, then there will be people wanting to see it, often those who have missed out on another property and are still keen to buy.

“Buyers are having to meet the asking price or miss out in pretty much every area of South Tyneside and in all types of properties.

“There’s not an area where properties aren’t selling, although perhaps some flats are not going quite as high.”

Mr McLean, who has operated his business for 41 years, added: “A cloud on the horizon is possibly from the employment situation over the next few months.

“I am also getting hints that some potential buyers have been asked for a larger deposit, with some even having their offer of a mortgage withdrawn.

“Lenders appear to be worried that house prices may drop and buyers will fall into negative equity, but if they don’t lend then people can’t buy. It’s a self-fulfilling prophecy.”

In its survey, lender the Nationwide claimed house prices in August hit their highest monthly rise in more than 16 years.

It said the average price was now £224,123 – but warned of an expected drop due to the feared economic impact on jobs of coronavirus.

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