South Shields is the North East’s housing hotspot, according to the latest data from KIS Housing NOW.
KIS Housing North of Watford pulls together up-to-the-minute information to provide a monthly spotlight of the region’s housing market.
After three months of negative growth it’s very good news to see North East house prices making up lost ground over the past four weeks and in a markedly stronger position than twelve months ago, with prices the best part of £10,000 higher than this time last year.Ajay Jagota
The latest report shows North East house prices have defied predictions of a worsening UK economy to record their strongest monthly growth this year.
Amid predictions from economists that quarterly figures due this week will show UK economic growth slowing sharply, house values in the North East rose by 1.9% in April, adding £3,099 to the price of the average house.
South Shields led the way last month, with a 5.4% rise and is second only to Blyth year-on-year.
Average regional property values are also 6% higher than 12 months ago, with the average property valued £9,591 higher in April 2017 than April 2016.
KIS founder and managing director Ajay Jagota said: “After three months of negative growth it’s very good news to see North East house prices making up lost ground over the past four weeks and in a markedly stronger position than12 months ago, with prices the best part of £10,000 higher than this time last year.
“The run-up to a General Election generally means flat house prices as buyers and sellers adopt a ‘wait and see’ approach, and even though this election has come slightly out of the blue I’d expect to see the same thing happen in May and June, with prices moving forward again come the summer, a traditionally strong period.
“Average asking prices for UK homes this week reached £313,000, all but double the North East average.
“When you combine that with historically low mortgage deals currently available for both owner-occupiers and investors, the North East remains a phenomenally good value location to make a home or invest in one.”
A typical North East home will currently cost you £166,566 –compared to £163,467 four weeks ago and £156,975 12 months ago.
Eighteen of the 20 areas surveyed saw prices rise, with only Cramlington and Jarrow recording slight falls.
Rising property prices have forced rental yields slightly downward – with property investors seeing an average return on their investment of 4.2%, 0.1% less than last month.
Peterlee is the pick of buy-to-rent locations.