Newcastle house prices increased in December

House prices increased by 2.3% in Newcastle in December, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 12.8% over the last year.

The average Newcastle house price in December was £198,347, Land Registry figures show – a 2.3% increase on November.

Over the month, the picture was different to that across the North East, where prices decreased 0.5%, and Newcastle was above the 0.4% drop for the UK as a whole.

Over the last year, the average sale price of property in Newcastle rose by £22,000 – putting the area seventh 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 18%, to £204,000. At the other end of the scale, properties in Sunderland gained 9.5% in value, giving an average price of £145,000.

The average UK house price was £294,000 in December 2022, which was £26,000 higher than 12 months earlier.

It meant prices increased by 9.8% annually in December, slowing from 10.6% annual growth in November, according to the Office for National Statistics.

First steps on the property ladder

First-time buyers in Newcastle spent an average of £171,000 on their property – £19,000 more than a year ago, and £33,000 more than in December 2017.

By comparison, former owner-occupiers paid £226,000 on average in December – 31.6% more than first-time buyers.

Property types

Owners of detached houses saw the biggest rise in property prices in Newcastle in December – they increased 3%, to £404,393 on average. Over the last year, prices rose by 16.7%.

Among other types of property:

Semi-detached: up 2.4% monthly; up 13.2% annually; £232,267 averageTerraced: up 2% monthly; up 12.5% annually; £193,507 averageFlats: up 2.3% monthly; up 9.7% annually; £127,181 average

How do property prices in Newcastle compare?

Buyers paid 21.1% more than the average price in the North East (£164,000) in December for a property in Newcastle. Across the North East, property prices are high compared to those across the UK, where the average cost £294,000.

The most expensive properties in the North East were in North Tyneside – £210,000 on average, and 6% more than in Newcastle. North Tyneside properties cost 1.6 times as much as homes in County Durham (£132,000 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 December

Newcastle: £198,347The North East:£163,731UK: £294,329

Annual growth to December

Newcastle: +12.8%The North East: +11.7%UK: +9.8%

Highest and lowest annual growth in the North East

Northumberland: +18%Sunderland: +9.5%