Member Article

North East house prices “flat or falling”

House prices in the North East are flat or falling – despite national fears of a “housing bubble”.

Research from estate agent Rightmove shows North East property prices up just 0.2% this month, compared to a rise in London in excess of 10% – with leading

North East property expert Ajay Jagota suggesting that local prices could even still be falling.

The figures showed house prices in the capital soaring by £50,000 a single month, with property values up 2.8% nationally from September to October, and 3.8% since this time last year.

The North East, however was one of four areas to record a year-on-year fall in house values – alongside the North West, Wales and the Midlands – with prices falling by 2.2%.

Despite talk of a “crazy” and “unsustainable” property market in London, the North East is also within the seven out of ten areas where house price increases remain below inflation.

Ajay, who manages properties for 700 landlords from branches in Sunderland, South Shields, North Shields and Welwyn Garden City, believes that this is not all bad news for the North East:

He said: “Rightmove’s statistics have been criticised for being based on asking prices rather than actual prices, so if those critics are right, it could mean that not only are North East house prices flat, they could even still be falling.

“One thing is certain, Rightmove’s conclusion that there is currently ‘no risk’ of a housing bubble outside of London seems a pretty solid one.

“Of course, a lot of analysis of house prices can ignore a fundamental truth about housing in the UK in 2013. Home ownership is falling for the first time in recorded history, and it now at a lower level than it has been in 30 years, with more and more people choosing to – or having no choice but to – rent.

“This is another example of why the government’s Help to Buy scheme is so important, as the policy takes into account the regional differences to help the housing market and housebuyers across the UK.

“All of this means that with that the North East remains a very attractive location for the buy-to-let investor, even if that’s just young family looking to move up the property ladder but unable to sell their existing property, who with the right support could easily become accidental entrepreneurs.

“September is a traditionally volatile month for the property market, so only time will tell in terms of a definitive picture of the health of the North East housing market – but there are more than enough grounds for optimism despite the apparently gloomy headline figures.”

This was posted in Bdaily's Members' News section by Ajay Jagota .