South Tyneside house prices dropped slightly in August

House prices dropped slightly, by 0.3%, in South Tyneside in August, new figures show.

House prices dropped slightly, by 0.3%, in South Tyneside in August, new figures show.

But the drop does not reverse the longer-term trend, which has seen property prices in the area grow by 4.6% over the last year – though still the lowest in the North East.

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The average South Tyneside house price in August was £154,842, Land Registry figures show – a 0.3% decrease on July.

Over the month, the picture was different to that across the North East, where prices increased 0.9%, and South Tyneside was lower than the 0.9% rise for the UK as a whole.

Over the last year, the average sale price of property in South Tyneside rose by £6,800 – 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 North Tyneside, where property prices increased on average by 16%, to £208,000.

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An imbalance between supply and demand for properties saw house prices climb across the UK throughout the pandemic.

But experts say expectations have changed significantly in recent weeks amid mortgage rate rises, with the likelihood of a dampening effect on house price growth.

According to figures from Moneyfacts.co.uk On Wednesday, the average two-year fixed-rate mortgage on the market has a rate of 6.52% and the average five-year fix is at 6.36%.

There are around 900 fewer mortgage products available than there were on the day of the mini-budget in September.

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Chris Druce, senior research analyst at Knight Frank, said: “Current activity in the housing market is being shaped by mortgage status.

“Those that can are pushing on and securing deals ahead of further increases, while others have paused plans to digest events.

“With affordability set to be a growing barrier for many homebuyers in the coming months, we forecast house price growth will slow from here, with price falls in 2023.”

First steps on the property ladder

First-time buyers in South Tyneside spent an average of £137,800 on their property – £5,600 more than a year ago, and £25,400 more than in August 2017.

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By comparison, former owner-occupiers paid £172,100 on average in August – 24.8% more than first-time buyers.

Property types

Owners of flats saw the biggest fall in property prices South Tyneside in August – they dropped 0.5% in price, to £88,652 on average. But over the last year, prices rose by 1.2%.

Among other types of property:

Detached: down 0.3% monthly; up 6.8% annually; £291,592 averageSemi-detached: down 0.4% monthly; up 5.2% annually; £173,240 averageTerraced: down 0.2% monthly; up 4.7% annually; £137,034 average

How do property prices in South Tyneside compare?

Buyers paid 5.8% less than the average price in the North East (£164,000) in August 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.

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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 1.6 times as much as homes in County Durham (£130,000 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 August

South Tyneside: £154,842The North East:£164,395UK: £295,903

Annual growth to August

South Tyneside: +4.6%The North East: +14.3%UK: +13.6%

Highest and lowest annual growth in the North East

North Tyneside: +16%South Tyneside: +4.6%