The North East of England has emerged as a standout performer in the UK housing market, achieving one of the highest growth rates in residential property prices in June 2024, with a year on year increase of 1.9%.
High value areas include Haltwhistle, Jesmond, Tynemouth and Ponteland, all of which boast homes that potential buyers are willing to offer over the asking price for. For buy to let properties, Sunderland takes the top spot nationally, with an average gross rental yield of 8.96%.
This increase in house prices reflects a combination of economic revitalisation, increased development in infrastructure and an increasing desirability amongst homebuyers for affordability and high quality of life.
Economic Revitalisation and Investment
One of the primary drivers behind the North East’s impressive property price growth is its ongoing economic revitalisation.
Significant investments in the region’s infrastructure, including the development of new transport links- such as the A1 expansion and new Metro trains- and the regeneration of urban areas, have made it a more attractive place to live and work.
Major cities like Newcastle, Sunderland, and Durham have seen substantial improvements in their transportation networks, making commuting easier and more efficient. Whilst there are currently repairs to the Tyne Bridge and Tyne Tunnel, this work will improve connectivity in the long-term.
Additionally, the North East has benefited from various government initiatives aimed at boosting regional development. These initiatives have included investments in technology hubs, business parks, and innovation centres, particularly in the Tees Valley where Teesworks and the Middlesbrough Development Corporation have brought new jobs, homes and national businesses to the region as part of the Levelling Up scheme.
As a result, the region has experienced an influx of young professionals and families seeking employment opportunities, further driving demand for residential properties, including first time buyers who make us of no Stamp Duty on first purchases.
Affordability and Quality of Life
Compared to other parts of the UK, the North East has traditionally offered more affordable housing options. The recent figures reflect this number with the North East the most affordable region of the UK at present.
This affordability, coupled with a high quality of life, has made the region increasingly appealing to homebuyers. Cities like Newcastle and Durham boast vibrant cultural scenes, excellent educational institutions, and a wealth of recreational activities, making them ideal locations for families and individuals alike.
The scenic beauty of the North East, with its stunning coastlines, national parks, and historic landmarks, adds to its allure. Areas such as Northumberland and the Durham Dales provide residents with the opportunity to enjoy a rural lifestyle while still being within reach of urban amenities. This balance of affordability and quality of life has been a significant factor in attracting new residents and driving up property prices.
Housing Market Dynamics
Whilst the average asking price across the UK has only increased by 0.6% year on year, the North East’s prices have over doubled this figure, whilst still remaining the most affordable in the UK. This combination, as well as an increase in new-build developments by housebuilders such as Story Homes, Robertson Homes and Avant, has ensured that the North East population has access to an abundance of properties.
Full-service property firm, Bradley Hall, has seen the demand for properties increase. Neil Hart, Chief Executive of the Newcastle headquartered firm, commented: “As a firm, we have seen an increase in potential buyers across our North East offices. The affordability of homes in the region, and the good quality new homes that are being produced, are attracting families from the South who are looking for a better quality of life.
“With so much countryside and coast to explore, as well as vibrant cities, the North East has something for everyone. There are redevelopments happening across the region, including in Sunderland and Middlesbrough, making them modern, appealing places to live and work.”
Future Prospects
Looking ahead, the North East’s housing market is poised for continued growth. Ongoing investments in infrastructure and economic development are expected to sustain the region’s appeal to homebuyers and investors. The completion of major projects, such as the expansion of the Tyne and Wear Metro and the redevelopment of key urban areas, will further enhance the region’s connectivity and liveability.
Furthermore, the Levelling Up scheme, which promotes economic growth outside of London and the South East, has been welcomed by local leaders. Continued support for business innovation, job creation, and housing development will likely sustain the momentum in property price growth.
For details of residential properties available in the region, visit www.bradleyhall.co.uk
