North East Property Prices Rise £5,000 In April
When it comes to property prices in the North East, it is important to stay involved with the market. At Villabela, we help our clients stay in touch with data and we are always happy to offer guidance and advice that helps you make a more informed decision.
If you are looking for signs that the North East property market is experiencing some optimism now, figures from a local property firm will be positive to you. Data indicates that regional property prices rose by 3.2% in April, and this added £5,512 to the average value of property. Given that prices rose by 1.3% in March, North East homes have risen by 5.5% compared to early February figures.
According to research, property values at the close of April 2018, stood at £173,512 in the local area. This is an increase of 4.2% compared to the £165,566 average value of April 2017. This saw an increase of close to £7,000 in cash terms.
Some areas of the North East are in fantastic demand
These recent figures and study suggests that Killingworth and South Shields are in great demand in the North East. The relative growth in property prices for these areas are 6.6% and 5.1% respectively. The cash value of the increase in Killingworth equates to £10,991 and £11,901 in Tynemouth. Other areas which experienced an increase in average price growth include Tynemouth, with a 4.1% increase, North Shields, with a 4.2% increase, and Jarrow, which experienced an increase of 4.2%.
In the past 12 months, house prices in Whitley Bay and Killingworth have performed strongly, increasing by 7% and 10% respectively.
Rental yields have dipped slightly of late
However, while there will be many people who are pleased to hear about the increase in property prices, there has been a fall in rental yields. In fact, according to the report, rental yields in the North East are at their lowest level in the past three years.
The rental yield for Whitley Bay is classed as 2.9% and this is the lowest recorded figure in recent years. Tynemouth offers an expected rental yield of 3.4% but there are more positive returns on offer in Gateshead, with a 5% yield and Newcastle, with an average yield of 5.1%.
There is however positive news for tenants with average rents dropping £4 a month based on the figures from four weeks previously. The movement from £578 to £574 could see tenants saving close to £50 over the course of the year.
The average monthly rents for some leading areas across the North East are:
- Blyth with an average monthly rent of £425
- Easington with an average monthly rent of £459
- Durham City with an average monthly rent of £789
- Tynemouth with an average monthly rent of £844
These figures include the cheapest and most expensive rents across the North East, indicating that there is a wide spread of rental property in this part of the country.
It is important to not get carried away with figures on a month to month basis. After all, the positivity surrounding April figures compared to March may have a lot to do with the terrible weather conditions we endured at the beginning of March. It is not beyond the realms of possibility to suggest The Beast from The East impacted on the North East property market. If you want up to date and fully informed North East property and rental market information, stick with Villabela. We are local rental specialists and we are keen to ensure you receive the best support and guidance.
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