House prices increased by 3.4% – more than the average for the North East – in South Tyneside in April, new figures show.
The rise contributes to the longer-term trend, which has seen property prices in the area grow by 8.2% 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 South Tyneside house price in April was £156,586, Land Registry figures show – a 3.4% increase on March.
Over the month, the picture was different to that across the North East, where prices increased 0.1%, and South Tyneside was above the 1.1% rise for the UK as a whole.
Over the last year, the average sale price of property in South Tyneside rose by £12,000 – putting the area eighth 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 South Tyneside spent an average of £139,000 on their property – £10,000 more than a year ago, and £31,000 more than in April 2017.
By comparison, former owner-occupiers paid £174,000 on average in April – 24.7% more than first-time buyers.
Owners of terraced houses saw the biggest rise in property prices in South Tyneside in April – they increased 3.6%, to £137,822 on average. Over the last year, prices rose by 7.8%.
Among other types of property:
Detached: up 3.4% monthly; up 10.7% annually; £295,710 averageSemi-detached: up 3.5% monthly; up 9.3% annually; £175,402 averageFlats: up 2.8% monthly; up 4.5% annually; £90,236 average
How do property prices in South Tyneside compare?
Buyers paid 0.9% more than the average price in the North East (£155,000) in April 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 £281,000.
The most expensive properties in the North East were in North Tyneside – £195,000 on average, and 1.2 times as much as more than in South Tyneside. North Tyneside properties cost 1.5 times as much as homes in County Durham (£126,000 average), at the other end of the scale.
The highest property prices across the UK were in Kensington and Chelsea.
Average property price in April
South Tyneside: £156,586The North East:£155,215UK: £281,161
Annual growth to April
South Tyneside: +8.2%The North East: +10.7%UK: +12.4%
Highest and lowest annual growth in the North East
Middlesbrough: +16.5%Gateshead: +5.4%