House prices take pre-Christmas slump

Ajay Jagota
Ajay Jagota

North East property prices fell back slightly last month but remain four per cent higher on average than this time last year.

Figures from regional property firm KIS show that average house values in the region dropped 0.8% in October, wiping out 0.6% growth recorded in September.

A typical property in the region is currently valued at £166,335 – a month-on-month fall of £1,314 in cash terms.

Prices are also 3.9% higher than those of twelve months ago, with a typical house now valued at £6,257 more than at the end of September last year.

Property values fell in 15 of the 20 areas surveyed at the end of October 2017, with property values falling fastest in Sunderland (-5.4%), Killingworth (-3.1%) Durham City (-2.4%) and Jarrow (-1.8%)

Values rose the most in Blyth (0.7%) and Peterlee, Whitburn and Easington (0.4%)

Durham City is named the region’s Buy to Let Capital for the first time, with an average return of 6.8% for investors. Other strong performers for rental yield include Peterlee (6.2%) Newcastle (6.1%) and Gateshead (5.4%).

Ajay Jagota, founder and Managing Director of KIS Group, said: “It’s entirely unsurprising to see a modest fall in property prices at this time of year. Not only are the nights drawing in making people less likely to want to view houses, no-one really wants to move house close to Christmas.”