• Thu. Mar 28th, 2024

North East Connected

Hopping Across The North East From Hub To Hub

North East house prices up since Brexit vote

ByEmily

Jul 12, 2017 #Brexit, #KIS

KIS Housing NOW – Housing North of Watford – pulls together the most authoritative and up-to-the-minute data and the expert market analysis of the KIS Intelligence Service to give you an indispensable guide to the state of the North East property market.

Property Market Analysis

North East property prices have slightly slipped in the aftermath of the General Election – but are higher than they were at the time of last year’s EU referendum.

A typical property in the region is currently valued at £165,457 – 0.4% lower than the end of May, a drop of £669 in cash terms

Prices are 0.25% higher than they were at the time of last year’s Brexit vote – adding £418 to the value of a typical property.

House values in the region had previously fallen 0.2% in May, but rose by 1.9% in April.

6 of the 20 areas surveyed saw prices rise, with particularly strong performance recorded in Cramlington (2.1%) Jarrow (2%) Whitley Bay (1.6%) and Washington (0.7%)

Above average drops were recorded in South Shields (-2.9%) Easington (-2.6%) Peterlee (2.3%) and Killingworth (1.9%)

House prices in Blyth, Whitburn and Jarrow have performed the strongest over the past 12 months and since the Brexit vote, rising by 6.6% and 5.3% and 4.7% respectively.  Prices have fallen in some areas, particularly Peterlee (-3.8%) and Killingworth (-2.9%)

 

Rental Market Analysis

North East rents are unchanged at £577 per calendar month in June. Prices previously fell by £9 in May. Current values are £11 lower than this time last year when average rents were  £588pcm.

Average rental yields were pushed up by falling house prices – with property investors currently seeing an average return on their investment of 4.3%,  0.1% up on last month.

Investors in North East property continue to see significantly higher returns than those who have invested in London (average yield 3.2)

Blyth (£421) is currently the cheapest place to rent in the North East out of the areas surveyed, followed by Seaham (£431). Tynemouth (£1014pcm) is this month’s most expensive in general terms.

Peterlee continues to be the region’s Buy to Let Capital, with an average return of 6.3% for investors. Other strong performers for rental yield include Gateshead and Houghton-le-Spring (5.6%), Newcastle (5%)

Ajay Jagota, founder and Managing Director of Keep It Simple and Dlighted a Proptech company that delivers a Deposit replacement insurance solution which is an alternative to the cash Tenancy Deposit schemes TDS, DPS and Mydeposits.

He said:

“It’s striking is how little prices have changed since the Brexit vote, despite the doomsday scenarios we kept hearing out at the time. Granted growth has slowed somewhat since the vote, but we could well be in for a prolonged period of low growth and buyers and sellers continue to ‘wait and see’, which could mean good

excellent deals for those prepared to take the plunge.

“North East property prices have been stable for several months now, and with the General Election ending in a hung Parliament I’d expect them to stay that way for the time being.

“This is far from an undesirable thing, especially in a time of such uncertainty and volatility, and with average returns rising to 4.34% the North East is currently very attractive to investors.

“Some commentators have recently described property price growth across the UK as ‘uneven’ and that’s definitely something we’re seeing reflected in the North East this month, with growth driven by areas like Cramlington and Whitley Bay, but falling in the south of the region in places like Easington.”

By Emily