Newcastle house prices dropped slightly in April
House prices dropped slightly, by 0.4%, in Newcastle in April, new figures show.
But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 6.8% over the last year.
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Hide AdAn 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 Newcastle house price in April was £183,593, Land Registry figures show – a 0.4% decrease on March.
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Hide AdOver the month, the picture was different to that across the North East, where prices increased 0.1%, and Newcastle was lower than the 1.1% rise for the UK as a whole.
Over the last year, the average sale price of property in Newcastle rose by £12,000 – putting the area ninth 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. At the other end of the scale, properties in Gateshead gained just 5.4% in value, giving an average price of £149,000.
First steps on the property ladder
First-time buyers in Newcastle spent an average of £158,600 on their property – £9,100 more than a year ago, and £26,600 more than in April 2017.
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Hide AdBy comparison, former owner-occupiers paid £208,900 on average in April – 31.7% more than first-time buyers.
Property types
Owners of flats saw the biggest fall in property prices Newcastle in April – they dropped 1% in price, to £119,038 on average. But over the last year, prices rose by 2.4%.
Among other types of property:
Detached: up 0.4% monthly; up 13.3% annually; £376,715 averageSemi-detached: down 0.4% monthly; up 8.2% annually; £214,226 averageTerraced: down 0.3% monthly; up 5.6% annually; £177,798 average
How do property prices in Newcastle compare?
Buyers paid 18.3% more than the average price in the North East (£155,000) in April for a property in Newcastle. Across the North East, property prices are higher than those across the UK, where the average cost £281,000.
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Hide AdThe most expensive properties in the North East were in North Tyneside – £195,000 on average, and 6% more than in Newcastle. 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
Newcastle: £183,593The North East:£155,215UK: £281,161
Annual growth to April
Newcastle: +6.8%The North East: +10.7%UK: +12.4%
Highest and lowest annual growth in the North East
Middlesbrough: +16.5%Gateshead: +5.4%