Newcastle house prices dropped more than North East average in November

House prices dropped by 2.9% – more than the average for the North East – in Newcastle in November, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 8.7% over the last year.

The average Newcastle house price in November was £192,611, Land Registry figures show – a 2.9% decrease on October.

Over the month, the picture was similar to that across the North East, where prices decreased 2.6%, and Newcastle was lower than the 0.3% drop for the UK as a whole.

Over the last year, the average sale price of property in Newcastle rose by £15,000 – putting the area 11th 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 15.9%, to £150,000. At the other end of the scale, properties in Gateshead gained 7.6% in value, giving an average price of £156,000.

The average UK house price edged down to £295,000 in November 2022, from the previous month's record high of £296,000.

Property prices increased by 10.3% in the year to November, slowing from 12.4% in October.

Nathan Emerson, CEO of Propertymark, which represents estate agents, said: "In November, our agents reported a market that was on the cusp of seeing purchasing power handed back to buyers which was a trend we hadn’t seen in months."

And Roger Evans, director of home finance distribution at Gatehouse Bank, said: “The property market is slowly becoming more favourable for buyers in some areas as rates stabilise a little following the turbulence of 2022.”

First steps on the property ladder

First-time buyers in Newcastle spent an average of £166,000 on their property – £13,000 more than a year ago, and £29,000 more than in November 2017.

By comparison, former owner-occupiers paid £219,000 on average in November – 32% more than first-time buyers.

Property types

Owners of flats saw the biggest fall in property prices Newcastle in November – they dropped 3.4% in price, to £123,357 on average. But over the last year, prices rose by 5%.

Among other types of property:

Detached: down 2.4% monthly; up 11.5% annually; £388,655 averageSemi-detached: down 2.7% monthly; up 9.4% annually; £225,548 averageTerraced: down 2.9% monthly; up 9.2% annually; £188,905 average

How do property prices in Newcastle compare?

Buyers paid 18.5% more than the average price in the North East (£163,000) in November for a property in Newcastle. Across the North East, property prices are higher than those across the UK, where the average cost £295,000.

The most expensive properties in the North East were in North Tyneside – £208,000 on average, and 8% more than in Newcastle. North Tyneside properties cost 1.5 times as much as homes in County Durham (£136,000 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 November

Newcastle: £192,611The North East:£162,596UK: £294,910

Annual growth to November

Newcastle: +8.7%The North East: +11.6%UK: +10.3%

Highest and lowest annual growth in the North East

Middlesbrough: +15.9%Gateshead: +7.6%