South Tyneside housing market’s surprise drop after three months of growth

The gap between house prices in the South and the North of England has reached a record high
The gap between house prices in the South and the North of England has reached a record high

South Tyneside house prices have fallen since last month with property values in Jarrow and South Shields among the most affected areas in the North East.

September saw the regional average cost of a home fall by 2.8% to £159,106 – a drop by £4,497 since August.

In Jarrow, the average house fell by 2.5% to £127,033, while South Shields saw a drop of 2.4% to £136,197. Whitburn remains the worst place to invest for buy-to-let landlords – with rental yields at a regional low of 3.2%

The surprise fall was revealed in figures compiled by KIS Housing NOW (North of Watford) and comes after three successive months of growth, which had seen prices rise by 6.4%.

Only three of the twenty areas surveyed recorded rises – with the largest coming in Easington, where prices were 3.2% higher in September compared to August. Houghton(2.7%) and Blyth (1.9%) also saw prices rise over the past four weeks.

Killingworth saw prices fall by 5.7% - although they had risen by 9.9% in the preceding two months.

Prices also fell sharply in Whitley Bay, with a fall of 4.4% all-but-wiping-out the 4.5% rise seen over the course of July and August, while Newcastle and Gateshead (-2.3%) were other big value losers.

Compared to September 2014, Seaham has recorded the slowest price rise – with a rise of just 0.2%, or £179 in cash terms. Durham City meanwhile has seen prices rise by 9% in the same period, a jump of £19,116.

North East rents fell by £3 in August, with the typical property in the region now costing £562 per calendar month to rent.

Weakening property prices, however, saw a corresponding rise in rental yields - mean investors will get a marginally stronger return on their investment this month, with the average rental yield rising by 0.2% to 4.2%.

Easington (£411pcm) remains the cheapest place to rent in the North East, while Durham City (£815pcm) remains the most expensive.

Gateshead remains the region’s Buy to Let Capital, with an average return of 6.2% for investors.

Other strong performers for rental yield include Peterlee (5%) and Seaham and South Shields (4.6%). The lowest rental yields continue to be found in Whitburn where landlords can expect a 3.2% return on their investment.

Killingworth, Seaham and South Shields all saw rental yields rise by 0.2%, with Killingworth named this month’s Best to Invest due to its corresponding fall in property prices.