Newcastle house prices increased slightly in May

House prices increased slightly, by 0.6%, in Newcastle in May, 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.
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 slightly, by 0.6%, in Newcastle in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 8.8% over the last year.

The average Newcastle house price in May was £184,656, Land Registry figures show – a 0.6% increase on April.

Over the month, the picture was different to that across the North East, where prices decreased 0.1%, but Newcastle was lower than the 1.2% rise 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 eighth among the North East’s 12 local authorities with price data for annual growth.

The highest annual growth in the region was in Redcar and Cleveland, where property prices increased on average by 14.5%, to £154,000. At the other end of the scale, properties in Hartlepool gained 3.3% in value, giving an average price of £129,000.

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

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said:“The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Newcastle spent an average of £160,000 on their property – £12,000 more than a year ago, and £25,000 more than in May 2017.

By comparison, former owner-occupiers paid £210,000 on average in May – 31.5% more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Newcastle in May – they increased 1%, to £180,171 on average. Over the last year, prices rose by 8.4%.

Among other types of property:

Detached: up 0.1% monthly; up 13.8% annually; £374,166 averageSemi-detached: up 0.7% monthly; up 10.3% annually; £215,842 averageFlats: up 0.2% monthly; up 4.1% annually; £119,227 average

How do property prices in Newcastle compare?

Buyers paid 20.2% more than the average price in the North East (£154,000) in May for a property in Newcastle. Across the North East, property prices are high compared to those across the UK, where the average cost £283,000.

The most expensive properties in the North East were in North Tyneside – £196,000 on average, and 6% more than in Newcastle. North Tyneside properties cost 1.6 times as much as homes in County Durham (£125,000 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 May

Newcastle: £184,656The North East:£153,592UK: £283,496

Annual growth to May

Newcastle: +8.8%The North East: +9.7%UK: +12.8%

Highest and lowest annual growth in the North East

Redcar and Cleveland: +14.5%Hartlepool: +3.3%