Newcastle homes soar £30,000 in a year

Property values suffered a month-on-month fall of 1% in this week's House Price Index, equivalent to £1,466 from April to May this year.

But homes across the city saw a 13% increase year-on-year, amounting to £28,072.

The average Newcastle home is now worth £209,493, making the city far and away the most expensive area of Tyne and Wear.

Newcastle homes performed better than the wider Northumberland area, where prices increased by 9% over the last year, adding £17,197 onto the value of the average property, now worth £199,966.

House prices in England saw an annual price rise of 3.4%, making the average property worth £290,000, while Wales had a 5.1% increase and homes stood at £210,000 on average.

North of the border in Scotland there was no monthly increase but an annual 6.4% rise, meaning the average Scottish home now costs around £192,000.

The report revealed more than 80,000 properties were sold in March 2025 surpassing the totals from both 2023 and 2024.

Tom Evans, sales director at Purplebricks Estate Agency said: “Great news once again for the nation’s homeowners, and at a promising time for first-time buyers too.

“The falling interest rates over the last 12 months has helped drive down mortgage rates and drive up property prices - and the forecast base rate cut in August should continue that trend.

“We are confident house prices will continue to rise into next year, meaning your home at the start of 2026 will be worth more than it is today.”

Robert Nichols, managing director of Purplebricks Mortgages said: “This is the best time to be a first-time buyer in recent years.

“Lower interest rates, means lower mortgage rates. And, while that is pushing up house prices, it also acts as a confidence booster to would-be buyers that owning property pays dividends.

“And, the government’s new ‘Helping Hand’ scheme for first-time buyers - making more mortgages available at 4.5 times a buyer’s income - will drive more movement in the market.”