Gateshead house prices increased more than North East average in April

House prices increased by 3% – more than the average for the North East – in Gateshead in April, new figures show.

File photo dated 14/10/14 of a sold and for sale signs. A gradual slowdown in the housing market in Scotland is likely as the cost-of-living crisis bites, a report has warned. House prices in Scotland continue to edge upwards but indicators are softening slightly, according to the Royal Institution of Chartered Surveyors (Rics) latest survey. Issue date: Thursday May 12, 2022.
File photo dated 14/10/14 of a sold and for sale signs. A gradual slowdown in the housing market in Scotland is likely as the cost-of-living crisis bites, a report has warned. House prices in Scotland continue to edge upwards but indicators are softening slightly, according to the Royal Institution of Chartered Surveyors (Rics) latest survey. Issue date: Thursday May 12, 2022.

House prices increased by 3% – more than the average for the North East – in Gateshead in April, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 5.4% over the last year – though still the lowest in the North East.

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An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

The need for larger deposits and constraints on accessing mortgages have pushed homeownership further out of reach for many first-time buyers – despite Government figures showing 50% of renters would be able to afford the monthly payments.

In a recent major speech in Blackpool, Prime Minister Boris Johnson announced a “comprehensive review” of the mortgage market would take place in a bid to help more people onto the property ladder.

The average Gateshead house price in April was £148,534, Land Registry figures show – a 3% increase on March.

Over the month, the picture was different to that across the North East, where prices increased 0.1%, and Gateshead was above the 1.1% rise for the UK as a whole.

Over the last year, the average sale price of property in Gateshead rose by £7,500 – 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 Middlesbrough, where property prices increased on average by 16.5%, to £142,000.

First steps on the property ladder

First-time buyers in Gateshead spent an average of £130,400 on their property – £6,100 more than a year ago, and £18,400 more than in April 2017.

By comparison, former owner-occupiers paid £168,700 on average in April – 29.4% more than first-time buyers.

Property types

Owners of detached houses saw the biggest rise in property prices in Gateshead in April – they increased 3.2%, to £277,752 on average. Over the last year, prices rose by 8.7%.

Among other types of property:

Semi-detached: up 3% monthly; up 6.5% annually; £166,449 averageTerraced: up 3.1% monthly; up 4.7% annually; £140,174 averageFlats: up 2.4% monthly; up 0.9% annually; £89,843 average

How do property prices in Gateshead compare?

Buyers paid 4.3% less than the average price in the North East (£155,000) in April for a property in Gateshead. Across the North East, property prices are lower than those across the UK, where the average cost £281,000.

The most expensive properties in the North East were in North Tyneside – £195,000 on average, and 1.3 times as much as more than in Gateshead. North Tyneside properties cost 1.5 times as much as homes in County Durham (£126,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in April

Gateshead: £148,534The North East:£155,215UK: £281,161

Annual growth to April

Gateshead: +5.4%The North East: +10.7%UK: +12.4%

Highest and lowest annual growth in the North East

Middlesbrough: +16.5%Gateshead: +5.4%