South Tyneside house prices are ‘drifting down’ as figures show a 4.5% year-on-year rise
A South Shields estate agent believes that the borough’s house prices are now starting to “drift down slightly”.
House prices and rents have risen sharply again in South Tyneside according to the latest figures – but that might not be the whole story.
The figures, from the Office for National Statistics (ONS) and Land Registry via NestInsights, say that the average price of a home in South Tyneside was an estimated £161,559 in July 2026, a 4.5% rise from the 12 months before.
Over five years, house prices rose by 4.2% annually, faster than 76% of areas in England and Wales and 77th of 317. The year saw 1,572 South Tyneside homes being sold in the same 12 months.
Private rent in the borough averaged £743 a month in August 2026, up 7.2% from the previous 12 months.
Gross yield, money from rents paid to a property owned, came to 5.4% of the property price which is higher than in 88% of areas.
‘Prices have started to drift down slightly’
However, Sophie McLean Moorhouse, a sales director at Andrew McLean Estate & Letting Agents in South Shields, says the trend has been slowing in the most recent months not covered in the figures.
She said: “Following Covid there was quite a big hike in property prices, both rental and sales. Everything went crazy and it’s been like that for a solid five years.
“But in the last six to 12 months we’ve found in South Shields in particular that prices have started to drift down slightly.
“So although asking prices might be quite high, property sales figures might be less than that.
“People are having to accept lower offers on properties now to get them sold, because the market has slowed down on the sales market. I think the rents have also had their peak as well.
“In years following Covid we would have 10 applications per properties, but that’s not happening anymore.
“It doesn’t have a detrimental effect on our business at all. It just means on the sales side of things that recently it’s been slower, but it hasn’t affected the way our business runs.
“Prices are up year-on-year, but when statistics are released for this year I would say if anything they’ve drifted. They won’t have gone up in our area.”