House prices increased by 1.7% – more than the average for the North East – in North Tyneside in April, 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.
An 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 North Tyneside house price in April was £194,803, Land Registry figures show – a 1.7% increase on March.
Over the month, the picture was different to that across the North East, where prices increased 0.1%, and North Tyneside was above the 1.1% rise for the UK as a whole.
Over the last year, the average sale price of property in North Tyneside rose by £16,000 – 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 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 North Tyneside spent an average of £165,000 on their property – £13,000 more than a year ago, and £36,000 more than in April 2017.
By comparison, former owner-occupiers paid £222,000 on average in April – 34% more than first-time buyers.
Owners of detached houses saw the biggest rise in property prices in North Tyneside in April – they increased 2%, to £370,937 on average. Over the last year, prices rose by 13.7%.
Among other types of property:
Semi-detached: up 1.7% monthly; up 9.7% annually; £214,283 averageTerraced: up 1.8% monthly; up 8% annually; £183,660 averageFlats: up 1.1% monthly; up 4.6% annually; £110,951 average
How do property prices in North Tyneside compare?
Buyers paid more for properties in North Tyneside than anywhere else in the North East in April. The average price paid would buy 1.5 homes in County Durham (£126,000), at the other end of the scale.
The highest property prices across the UK were in Kensington and Chelsea.
Across the North East, property prices are low compared to those across the UK, where the average cost £281,000.
Average property price in April
North Tyneside: £194,803The North East:£155,215UK: £281,161
Annual growth to April
North Tyneside: +8.8%The North East: +10.7%UK: +12.4%
Highest and lowest annual growth in the North East
Middlesbrough: +16.5%Gateshead: +5.4%