Estate agency group My Property Box says that bricks and mortar remain a solid investment in the North East despite the latest data pointing to a 2.3 percent reduction in UK house prices during November.
Managing director Ben Quaintrell agrees with the Halifax House Index that inflationary pressures are behind the slow down, but says the market remains healthy as demand still outstrips supply in both sales and rented sectors.
The Halifax Index reports the average UK home was worth £285,579 as the annual rate of growth slowed to 4.7 percent from 8.2 percent and a monthly fall in November of 2.3 percent as buyers and sellers take stock as the market continues to stabilise.
He points out that it was inevitable the huge annual increases in property values witnessed over the last ten years would eventually slow.
Average house prices have risen 53 percent over the last decade, from £222,989 to £341,019, according to the Office for National Statistics (ONS). Some of the sharpest spikes have occurred since the second half of 2020 – with the average UK house price rising 13.6 percent in the 12 months to August last year.
The North East was the lowest performing region when it comes to house price values, despite recording a 25 percent increase over the last ten years, with the lowest asking prices being in Middlesbrough, where values rose 6.2 percent during that time, followed by Peterlee (+8.4 percent) and Hartlepool (+8.9 percent).
In September 2022, the average house price in the North East was £164,000, whilst the ONS has reported that private rental prices paid by tenants in the region rose by 3.5 percent in the 12 months to November – which meant many landlords enjoyed static or increased yields despite the rise in property prices.
Ben Quaintrell said: “There is no doubt that the housing market has slowed over the past few months as some buyers and sellers wait for it to stabilise.
“However, this time of the year is traditionally quiet for sales so we may see the situation change in the New Year. The demand for homes continues to outstrip supply and we are still seeing sales agreed on properties within weeks of them going on the market.
“Any small percentage fall in asking prices is minimal when compared to how much property values have soared, not only over the last decade, but in the last 12 months. Property remains a good investment and, despite some uncertainty in the market, it will continue to be so.”
Darlington-headquartered My Property Box, which in 2022 marked its 10th anniversary, is involved in sales and lettings across North Yorkshire and the North East. It recently strengthened its position in the north of the region with the acquisition of Newcastle-based Acorn Properties and KIS Lettings.