When it comes to property price predictions for 2018, according to leading estate agents, there is going to be somewhat of a North/South divide. In some areas like London, South West England and Wales, home sellers have slashed asking prices by around £8,000 in December 2017 to meet the more challenging market forecast in 2018.
In the North East of England in cities like Newcastle, things are different. The biggest gain in asking prices in 2017 was seen in the North East. Newly-listed homes in the region rose on average 4.7% to around £146,090 which bucked the monthly downtrend in mid-December in most other areas of the UK.
Average price December 2017 – £146,090
Average price November 2017 – £144,186
Monthly change +1.3%
Average price December 2016 – £139,548
Annual change +4.7%
As the above regional trend shows, North East property prices showed the highest gain in monthly change as well as annual change, set to continue throughout 2018. This has been put down to sought-after family properties for sale in the North East and great locations such as Newcastle. Many experts agree that property prices in the region are going to rise again. The appeal for letting a property in Newcastle and the North East is increasing, great news for landlords.
Demand for suitable housing in the North East is increasing too especially 3, 4 and 5 bed homes in cities like Newcastle, Sunderland and Durham. This will nudge property prices up even higher leaving some in the position of having to rent long or short-term. The new build housing market in the North East during 2017 was quite buoyant with new homes being built in:-
- Newcastle upon Tyne
New builds across the region were in the main quickly snapped up which had a knock-on effect with price increases for older properties as the demand for properties remained high. Increasing stretched buyer affordability along with tighter lending criteria and increased stamp duty for second-home owners is also taking its toll on upwards price pressure. This is again good news for the North East rental sector as many young professionals are priced out of the market.
Demand for larger houses for growing families exceed supply in the North East. This is forcing potential buyers to rent so the appeal for letting in Newcastle or other parts of the region is on the increase. Cash-strapped buyers are also more concerned about major spending commitments so are deciding to contact letting agents instead.
Property prices look like they are going to continue to increase in the North East throughout the year according to the release of recent data. 2018 promises to be a good year for landlords especially those who have property to rent that might appeal to the young professional and student market.