South Tyneside house prices dropped in October

House prices dropped by 1.1% in South Tyneside in October, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 5.2% over the last year – though still the lowest in the North East.

The average South Tyneside house price in October was £155,540, Land Registry figures show – a 1.1% decrease on September.

Over the month, the picture was different to that across the North East, where prices increased 1.9%, and South Tyneside was lower than the 0.3% rise for the UK as a whole.

Over the last year, the average sale price of property in South Tyneside rose by £7,700 – putting the area bottom 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.

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 South Tyneside spent an average of £138,500 on their property – £6,700 more than a year ago, and £23,100 more than in October 2017.

By comparison, former owner-occupiers paid £172,800 on average in October – 24.7% more than first-time buyers.

Property types

Owners of flats saw the biggest fall in property prices South Tyneside in October – they dropped 1.5% in price, to £88,407 on average. But over the last year, prices rose by 1.8%.

Among other types of property:

Detached: down 0.7% monthly; up 5.8% annually; £292,059 averageSemi-detached: down 1.1% monthly; up 5.7% annually; £174,198 averageTerraced: down 1.1% monthly; up 6% annually; £138,032 average

How do property prices in South Tyneside compare?

Buyers paid 7.6% less than the average price in the North East (£168,000) in October for a property in South Tyneside. Across the North East, property prices are lower 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 1.3 times as much as more than in South Tyneside. 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

South Tyneside: £155,540The North East:£168,367UK: £296,422

Annual growth to October

South Tyneside: +5.2%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%