Estate agent predicts North East house prices will drop after huge covid price hikes

The government's UK House Price Index was published today and revealed that the region has been the hardest hit by the events of the last year.

There has been a 10.8% rise in the average house price since July 2020.

The average cost of a property in Newcastle now rests at £144,935.

Nonetheless, despite the rise, that average figure remains the lowest in the country with property in London the most expensive at £494,673.

However after a busy year for the housing market, and with the end of the Stamp Duty holiday in sight, one local estate agent predicts prices could drop in the coming months.

Iain Weatherhead, North East Auction Manager at Pattinson Estate Agents told Newcastle World: “The prices on certain properties have really increased in recent months as people continue to rush to buy before the stamp duty holiday window closes at the end of this month.

"I’m looking to buy a property myself at the moment and in terms of house prices in the North East there’s been a huge rise.

"I do think we’re reaching a peak though and as we head into the winter months and the New Year, I believe we’ll start to see a levelling off and even a decline in prices.

"This is bittersweet because we’ll have clients who’ll be able to afford properties again that are currently priced out of the market.

"Next year it might be easier for those that don’t have as many funds available.”

Iain's predictions are also supported by the House Price Index as, since June 2021, prices have been falling at a rate of 3.5%.

The report also revealed that the North East saw the second-highest number of repossession sales in May 2021 with 2020.

The North West had the highest figure in that category, with 27 repossessions taking place.

Nationally, the UK has seen house prices fall by 4.5% since June 2021 with an annual price rise of 7% taking the average property value to £270,973.