Unemployment is dragging down house prices in South Tyneside

editorial image

House prices in South Tyneside have fallen by six per cent since 2009, with the figures linked to the levels of unemployment in the area, according to new research.

Figures by Lloyds Bank have found that the average house price in the borough has gone down from £133,685 to £125,636 in the last six years.

According to the bank, 6.4 per cent of people in South Tyneside are registered as unemployed – the seventh-highest figure in the country.

There is thought to be correlation between that figure and average house prices – with those in the 20 areas with the lowest unemployment rates seeing prices rise by almost £65,000 since 2009.

Those in the 20 areas with the highest unemployment have recorded an average house price increase of £4,000.

Andy Hulme, Lloyds Bank mortgages director, said: “There has been a very clear relationship between conditions in the local jobs market and house price performance during the period since the housing market downturn between 2007 and 2009.