Late summer hit for South Tyne home owners

Home owners in South Tyneside took a late summer hit with a slight drop in average prices, new figures show.

House prices take a late summer hit.
House prices take a late summer hit.

Land Registry data shows house values in the area dropped by by 0.3% in August – but the longer term trend has still seen property prices in the area grow by 4.6% over the last year.

The average South Tyneside house price in August was £154,842 – and the housing market was different to that across the North East and nationally, where prices increased by 0.9%.

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Over the last year, the average sale price of property in South Tyneside has risen by £6,800 as a shortage of properties coming on the market saw prices climb throughout the pandemic.

Experts say expectations have changed significantly in recent weeks amid mortgage rate rises, with the likelihood of it damping down house price rises.

First-time buyers in South Tyneside spent an average of £137,800 on a property – £5,600 more than a year ago, and £25,400 more than in August 2017.

Owners of flats saw the biggest fall in property prices in August. Prices dropped by 0.5% to an average of £88,652, but 1.2% up over the last year.

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Detached home prices fell by 0.3% over the month – but up 6.8% annually to an average of £291,592.

The price of a semi-detached home was down by 0.4% monthly – but up 5.2% annually – to an average of £173,240.

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Terraced home prices fell by 0.2% over the month – but up 4.7% annually to £137,034 on average.

The average price for a home in the North East in August was £164,395 and, nationally, it was £295,903.

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Buyers paid 5.8% less than the average price in the North East in August for a property in South Tyneside.

The average two-year fixed-rate mortgage on the market has a rate of 6.52% and the average five-year fix is at 6.36%.

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Chris Druce, senior research analyst at estate agents Knight Frank, said: “Current activity in the housing market is being shaped by mortgage status.

“With affordability set to be a growing barrier, we forecast house price growth will slow from here, with price falls in 2023.”