Newcastle house prices increased slightly in October

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

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 13% over the last year.

The average Newcastle house price in October was £197,896, Land Registry figures show – a 0.6% increase on September.

Over the month, the picture was different to that across the North East, where prices increased 1.9%, but Newcastle was above the 0.3% rise for the UK as a whole.

Over the last year, the average sale price of property in Newcastle rose by £23,000 – 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 Redcar and Cleveland, where property prices increased on average by 17.2%, to £164,000. At the other end of the scale, properties in South Tyneside gained 5.2% in value, giving an average price of £156,000.

Average UK house prices increased by 12.6% in the year to October, accelerating from 9.9% in September.

The increase in the annual percentage change was partly caused by a sharp fall in average house prices in October 2021, following changes to stamp duty.

The average UK house price was £296,400 in October, which was £33,000 higher than a year earlier.

Tom Bill, head of UK residential research at Knight Frank, said: “Despite today’s figures, double-digit UK house price growth is now a thing of the past.

“Even as the reverberations of the mini-budget fade, a more adverse lending landscape is emerging after 13 years of ultra-low rates."

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 £32,000 more than in October 2017.

By comparison, former owner-occupiers paid £225,000 on average in October – 32% more than first-time buyers.

Property types

Owners of detached houses saw the biggest rise in property prices in Newcastle in October – they increased 1.2%, to £399,053 on average. Over the last year, prices rose by 16.6%.

Among other types of property:

Semi-detached: up 0.5% monthly; up 13.4% annually; £231,203 averageTerraced: up 0.4% monthly; up 13.1% annually; £194,061 averageFlats: up 0.4% monthly; up 9.7% annually; £127,341 average

How do property prices in Newcastle compare?

Buyers paid 17.5% more than the average price in the North East (£168,000) in October for a property in Newcastle. Across the North East, property prices are higher than those across the UK, where the average cost £296,000.

The most expensive properties in the North East were in North Tyneside – £208,000 on average, and 5% 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 October

Newcastle: £197,896The North East:£168,367UK: £296,422

Annual growth to October

Newcastle: +13%The North East: +17.3%UK: +12.6%

Highest and lowest annual growth in the North East

Redcar and Cleveland: +17.2%South Tyneside: +5.2%