Having been sunk back in September 2022 by Liz Truss’ mini-budget, it’s taken time for positive reports on UK house prices to come through. Now, two years later, a recovery is being seen. Average house prices have been on the rise in the UK. According to the Office for National Statistics, the 12-month window ending June 2024 saw a 2.7 per cent increase. As a result, the average house price now sits at £288,000.
For the North East, the upticks have been among the best in the country. It’s been a time of steady house price growth overall. Making up for some areas that aren’t experiencing price increases are many places in the North of the country. Local investment has been a catalyst for this, as has the increased accessibility and versatility of the modern housing market.
Ahead of the curve in the North East
There were strong signs of strong growth in the North East earlier in the year. Through the first quarter, house prices in the region grew by 2.3 per cent. The trend has continued strongly for the annual average house price growth, with the region keeping up its healthy growth. Many factors have played into this. Investment in key sectors has encouraged more people to move to the North East.
So, too, has a comparatively low cost of living compared to other business hubs – especially London. Incentives to enhance infrastructure have worked a treat, enhancing areas beyond the major cities. Living in the North East has become a more attractive option, and those looking to cash in on the rush to the North have been able to do so with ease.
The modern housing market has diversified greatly since the turn of the decade. Anyone can now sell property for free online, without hidden fees. People can sell in their own timeframe and get an initial free cash offer. It lets everyone quickly and easily see where they stand without going through the lengthy process of testing the market. From there, people can sell quickly. It all adds to the competitiveness of the market that leads to an uptick in prices.
More housing coming to the North East
Source: Pixabay
With the aim of creating more social housing, NatWest has put up £5 billion in funding support. With this money coming into the sector by 2027, the hope is to facilitate UK social housing projects and bolster local communities. Firms need to apply for funding to then commit to new projects. One of the early beneficiaries is Believe with £90 million in funding. The landlord of some 18,000 homes is to deliver units for social rent and affordable rent and ownership.
Given the stark increases in rent, affordable rent units are desperately needed around the country. For many, the rate of rent is as much or greater than many monthly mortgage repayments. With the added topper that rent doesn’t result in property ownership, it’s become increasingly unappealing. Selling property has become increasingly straightforward, but the lower rungs of the property ladder are still quite high.
The housing market in the UK is regaining its health. In the North East, the steady recovery is happening faster than elsewhere. Soon, there’ll even be even more affordable options to get people into homes.