South Tyneside house prices increased more than North East average in September

House prices increased by 1.9% – more than the average for the North East – in South Tyneside in September, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 7.2% over the last year.

The average South Tyneside house price in September was £158,616, Land Registry figures show – a 1.9% increase on August.

Over the month, the picture was different to that across the North East, where prices increased 0.3%, and South Tyneside was above the UK as a whole, where prices did not change.

Over the last year, the average sale price of property in South Tyneside rose by £11,000 – 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 Northumberland, where property prices increased on average by 15.2%, to £203,000. At the other end of the scale, properties in Gateshead gained 5.3% in value, giving an average price of £153,000.

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

But typical property values stalled across the UK between August and September, which caused annual growth to slow.

Andy Sommerville, director at property data provider Search Acumen said the latest data is further evidence of "a turning tide for house prices".

The figures are yet to reflect the full impact of the mini-budget, announced towards the end of September, which sparked volatitility in the mortgage market and saw interest rates on new agreements soar.

Nicky Stevenson, managing director at estate agent group Fine and Country said: “Annual house price growth slowed in September against a backdrop of rising interest rates and shrinking disposable incomes."

“All eyes will now turn to Chancellor Jeremy Hunt’s autumn statement, which is expected to include both tax rises and spending cuts," he added.

First steps on the property ladder

First-time buyers in South Tyneside spent an average of £141,200 on their property – £9,200 more than a year ago, and £27,900 more than in September 2017.

By comparison, former owner-occupiers paid £176,200 on average in September – 24.7% more than first-time buyers.

Property types

Owners of semi-detached houses saw the biggest rise in property prices in South Tyneside in September – they increased 2.1%, to £177,844 on average. Over the last year, prices rose by 7.9%.

Among other types of property:

Detached: up 1.8% monthly; up 8.6% annually; £296,861 averageTerraced: up 2% monthly; up 7.7% annually; £140,585 averageFlats: up 1.3% monthly; up 3.5% annually; £90,416 average

How do property prices in South Tyneside compare?

Buyers paid 3.1% less than the average price in the North East (£164,000) in September for a property in South Tyneside. Across the North East, property prices are lower than those across the UK, where the average cost £295,000.

The most expensive properties in the North East were in North Tyneside – £207,000 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 (£133,000 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 September

South Tyneside: £158,616The North East:£163,768UK: £294,559

Annual growth to September

South Tyneside: +7.2%The North East: +5.8%UK: +9.5%

Highest and lowest annual growth in the North East

Northumberland: +15.2%Gateshead: +5.3%