House Price Index shows Newcastle property prices decreasing in line with UK slump

Newcastle homeowners have seen the price of their homes fall as the UK experiences a national slump in property prices.

UK property values suffered a month-on-month fall of nearly 3% in this week's House Price Index, the first time this year that prices have fallen. Homeowners in the city saw a loss, equivalent to £1,468, from March to April this year. The average Newcastle home is now worth £209,674 - nearly £60,000 below the UK average.

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However, homes in Newcastle gained value over the 12-month period from April 2024 to April 2025 - increasing by an average of 13%, boosting average price tags by £27,887. Newcastle homeowners narrowly beat Northumberland where house prices also increased by 13%, adding £25,878 to the value of the average property in the area.

Despite this, Northumberland properties suffered the biggest monthly drop, losing over £5,000 from March to April of this year. The average UK home is now worth £265,000 - while the average London property is priced at £566,614.

Newcastle is the eighth best city in the UK for nightlife, according to Capital on Tap, with 2.1 clubs and a whopping 6.5 pubs and bars per 10,000 people. It scored 4.3/5 for its nightlife and also has a great foodie scene, including two Michelin-starred restaurants. Cultural highlights include the BALTIC Centre for Contemporary Art, Laing Art Gallery and Newcastle Castle. The average monthly rent there is £1,073, according to the latest figures from the Office for National Statistics, which is well below the UK average of £1,335. All these things combined make it the fifth best city in the UK for enjoying the single life. | Ian Forsyth/Getty Images

The data, analysed by the UK’s biggest online estate agents Purplebricks, shows that while London values soared from March to April 2025, the UK saw an average slump of 2.7%. The monthly price fall followed changes to stamp duty that came into force from April 1, and which piled more costs onto buyers, particularly at the upper end of the market.

Despite the tough month for many homes in the UK, it has remained a stellar year for property with the average price of a home sitting at £265,000 - a £9,000 rise year-on-year. April marks the fourth consecutive month of annual price rises for UK properties. Since April 2024, homes have increased by 3.5% over the last calendar year

House prices in England saw an annual price rise of 3%, making the average property worth £286,000 while Wales had a 5.3% increase and homes stood at £210,000 on average. North of the border in Scotland there was a 5.8% increase, prices moving to £191,000 on the average home.

The HPI report also revealed there were fewer UK homes put up for sale in February this year, with nearly 7,000 fewer sold in February 2025 compared to the same time last year.

The average UK home is now worth £265,000

“This small monthly decline is little more than a bump in the road - a stumble after April’s stamp duty changes,” said Tom Evans, sales director at Purplebricks Estate Agency. “One of the best investments you can make is in bricks and mortar, and most buyers are looking at the long-term when they sign on the dotted line.

“2025 has so far been a great year for the market with continued price rises, which I predict will be back before long.”

Robert Nichols, managing director of Purplebricks Mortgages, said: “With 0% deposits, the lowest mortgage rates in two years, the UK is a buyers’ market right now. And, rising wages means there are more first-time buyers encouraged to put that all-important first foot on the property ladder.

“Movement at the bottom of the ladder will pay dividends in the long-run, promoting sales further and further up the chain - ultimately nudging prices up over time.”