House prices increased by 1.6% – more than the average for the North East – in Newcastle in September, new figures show.
The rise contributes to the longer-term trend, which has seen property prices in the area grow by 12.1% over the last year.
The average Newcastle house price in September was £195,638, Land Registry figures show – a 1.6% increase on August.
Over the month, the picture was different to that across the North East, where prices increased 0.3%, and Newcastle was above the UK as a whole, where prices did not change.
Over the last year, the average sale price of property in Newcastle rose by £21,000 – putting the area fifth 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. At the other end of the scale, properties in Gateshead gained 5.3% in value, giving an average price of £153,000.
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 Newcastle spent an average of £169,000 on their property – £17,000 more than a year ago, and £31,000 more than in September 2017.
By comparison, former owner-occupiers paid £223,000 on average in September – 31.9% more than first-time buyers.
Owners of semi-detached houses saw the biggest rise in property prices in Newcastle in September – they increased 1.8%, to £229,066 on average. Over the last year, prices rose by 12.8%.
Among other types of property:
Detached: up 1.7% monthly; up 15.7% annually; £391,460 averageTerraced: up 1.7% monthly; up 12.2% annually; £191,929 averageFlats: up 1.1% monthly; up 8.1% annually; £126,044 average
How do property prices in Newcastle compare?
Buyers paid 19.5% more than the average price in the North East (£164,000) in September 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 – £207,000 on average, and 6% more than in Newcastle. 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
Newcastle: £195,638The North East:£163,768UK: £294,559
Annual growth to September
Newcastle: +12.1%The North East: +5.8%UK: +9.5%
Highest and lowest annual growth in the North East
Northumberland: +15.2%Gateshead: +5.3%