South Tyneside house prices dropped more than North East average in May

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 dropped by 1% – more than the average for the North East – in South Tyneside in May, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 6% over the last year.

The average South Tyneside house price in May was £151,573, Land Registry figures show – a 1% decrease on April.

Over the month, the picture was different to that across the North East, where prices decreased 0.1%, and South Tyneside was lower than the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in South Tyneside rose by £8,600 – putting the area 10th 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 South Tyneside spent an average of £135,100 on their property – £7,400 more than a year ago, and £25,300 more than in May 2017.

By comparison, former owner-occupiers paid £168,100 on average in May – 24.5% more than first-time buyers.

Property types

Owners of detached houses saw the biggest fall in property prices South Tyneside in May – they dropped 1.4% in price, to £283,924 on average. But over the last year, prices rose by 7.5%.

Among other types of property:

Semi-detached: down 1.1% monthly; up 6.8% annually; £169,329 averageTerraced: down 0.7% monthly; up 6.2% annually; £134,168 averageFlats: down 1.3% monthly; up 2.6% annually; £87,396 average

How do property prices in South Tyneside compare?

Buyers paid 1.3% less than the average price in the North East (£154,000) in May for a property in South Tyneside. Across the North East, property prices are roughly the same as 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 1.3 times as much as more than in South Tyneside. 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

South Tyneside: £151,573The North East:£153,592UK: £283,496

Annual growth to May

South Tyneside: +6%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%