House prices dropped slightly, by 0.2%, in Gateshead in September, new figures show.
But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 5.3% over the last year – though still the lowest in the North East.
The average Gateshead house price in September was £152,518, Land Registry figures show – a 0.2% decrease on August.
Over the month, the picture was different to that across the North East, where prices increased 0.3%, and Gateshead was lower than the UK as a whole, where prices did not change.
Over the last year, the average sale price of property in Gateshead rose by £7,600 – putting the area bottom among the North East’s 12 local authorities with price data for annual growth.
The highest annual growth in the region was in Northumberland, where property prices increased on average by 15.2%, to £203,000.
An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.
But typical property values stalled across the UK between August and September, which caused annual growth to slow.
Andy Sommerville, director at property data provider Search Acumen said the latest data is further evidence of "a turning tide for house prices".
The figures are yet to reflect the full impact of the mini-budget, announced towards the end of September, which sparked volatitility in the mortgage market and saw interest rates on new agreements soar.
Nicky Stevenson, managing director at estate agent group Fine and Country said: “Annual house price growth slowed in September against a backdrop of rising interest rates and shrinking disposable incomes."
“All eyes will now turn to Chancellor Jeremy Hunt’s autumn statement, which is expected to include both tax rises and spending cuts," he added.
First steps on the property ladder
First-time buyers in Gateshead spent an average of £133,900 on their property – £6,200 more than a year ago, and £20,400 more than in September 2017.
By comparison, former owner-occupiers paid £173,200 on average in September – 29.4% more than first-time buyers.
Owners of flats saw the biggest fall in property prices Gateshead in September – they dropped 0.7% in price, to £91,181 on average. But over the last year, prices rose by 0.9%.
Among other types of property:
Detached: down 0.1% monthly; up 7.3% annually; £281,588 averageSemi-detached: down 0% monthly; up 6% annually; £171,221 averageTerraced: down 0.1% monthly; up 5.6% annually; £145,219 average
How do property prices in Gateshead compare?
Buyers paid 6.9% less than the average price in the North East (£164,000) in September for a property in Gateshead. Across the North East, property prices are lower than those across the UK, where the average cost £295,000.
The most expensive properties in the North East were in North Tyneside – £207,000 on average, and 1.4 times as much as more than in Gateshead. North Tyneside properties cost 1.5 times as much as homes in County Durham (£133,000 average), at the other end of the scale.
The highest property prices across the UK were in Kensington and Chelsea.
Average property price in September
Gateshead: £152,518The North East:£163,768UK: £294,559
Annual growth to September
Gateshead: +5.3%The North East: +5.8%UK: +9.5%
Highest and lowest annual growth in the North East
Northumberland: +15.2%Gateshead: +5.3%