My Property Box predicts that the housing market in the North East and North Yorkshire will remain buoyant despite predictions that growth nationally will dip.
Ben Quaintrell, founder and managing director of the Darlington-headquartered estate agent, said the many ‘levelling up’ initiatives across the region will ensure demand for property remains high.
He said: “It’s our experience that because demand is far exceeding supply, offers are being accepted on homes within days of them being advertised.
“There is a real buzz about the property market across the region – and that’s before the Treasury’s move to its northern campus in Darlington. This, along with other exciting developments, including Teesside Freeport, should largely insulate the housing market locally.”
He was speaking after mortgage lender Halifax revealed that UK house prices rose at a faster rate in 2021 (9.8%) than any year since 2004 (12.5%) – with an average property costing £276,091 in December, a rise of £24,000 over the year.
It said record house prices were fuelled by buyers seeking more space during lockdown, combined with the low cost of borrowing and stamp duty holidays.
However, it is now predicted that growth in property sales is expected to slow this year, dampened by higher mortgage rates and cost of living increases.
Ben added: “Looking to the next five years, the market will continue to grow, but the record rise in values we have witnessed recently may become more modest.
“However, here in the North East and North Yorkshire, there continues to be a lack of properties being listed and I expect demand will remain high as the region continues to boom.
“January is traditionally a quiet time for property sales but there is no sign of a fall in demand. It remains a strong sellers’ market.
“One problem is that some potential buyers give up as they believe there is too much of a financial gulf between the value of their own home and a larger property. However, what they don’t realise is their own home has risen in value by a similar rate.”
House price data released by Halifax found that Wales witnessed the greatest rate of house price growth across any UK region, with homes rising by £28,454 (14%) over the year to £231,134, followed by Yorkshire and Humberside, up £21,695 (10.3%) to £231,553, and East Midlands, up £24,375 (10.1%) to £265,828. The North experienced one of the lowest rises of £10,837 (5.9%) to £195,515.
Stockton-on-Tees appeared on the Halifax list of the UK’s 20 towns with the lowest average house price growth during 2020-21, with values rising £4,739 (2.5%) to £190,736.