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Property values continuing to fall in the North East

An aerial view of houses in Newcastle Credit: Owen Humphreys/PA Archive/Press Association Images

The only region across the country to see property values fall year-on-year was the North East, where they edged down by 0.1% to £97,596 on average, according to the Land Registry.

At a local authority level, Hartlepool saw the biggest annual price fall across the country, with a 6.6% drop taking average prices to £70,350.

Across England and Wales, property prices grew by 4.4% in the 12 months to December to reach £167,353 typically, which is also 1.1% higher than in November.

North East bucks trend with house price slump

House prices are dropping in the North East. Credit: ITV Tyne Tees

The North East was the only region to see house prices drop between 2012 and 2013, with the typical house price in the region now standing at £96,227.

On average, a property in the region is now worth less than one quarter of one in London.

House prices surged by more than 10 percent in London in November, but they edged down by 1.6 percent annually in the North East, Land Registry figures have shown.

The Land Registry's latest figures also show how house sales have been much stronger than in the same period last year.

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North East house prices down

Britain's property sector may be enjoying its best market conditions for six years as the housing revival gathers pace, but a report has revealed that prices fell by 0.1% in the North East.

The report, carried out by property analyst Hometrack, found that although overall prices grew across a third of the country in August, prices edged 0.1% lower in the North East and remained static across Yorkshire and Humberside and the East Midlands.

"Overall we expect demand to continue to expand over the remainder of the year so long as the outlook for the economy and mortgage rates remains unchanged.

"A lack of housing for sale is set to remain a feature of the market and this will keep an upward pressure on prices in the near term."

– Spokesperson for Hometrack

One in five North East families 'priced out' of housing market

A housing charity has called for the expansion of shared ownership homes for a generation of "forgotten families" in the North East priced out of home ownership.

A report by Shelter found a large number of families could find themselves stuck on the first rung of the property ladder or face renting.

  • As many as 1.8 million families in England could be affected
  • One in five families in the North East are being priced out of buying a family-sized home
  • More than a third of families in the region on low or average incomes are unable to afford monthly mortgage repayments under the Help to Buy scheme

The report also found that mortgage repayments on a shared ownership home in the North East would be affordable for 100% of families on low or middle incomes.

The Government, however, has argued that the report fails to take into account the money it is investing in building more affordable housing.

It also says that the number of first time buyers is at its highest level for six years.

Drop in North East house prices

House prices have dropped in the North East, even though property prices are going up elsewhere.

Homes in the North East have shown an annual fall of 5.7 per cent, with the average costing around £95,500.

Nationally, prices have risen by just over one per cent and in London they have shot up by 6.7 per cent.

The Royal Institution of Chartered Surveyors believe that cheaper rates and easier access to mortgages have generally boosted confidence, but that has not been reflected in the North East.

North East house prices on the rise

Official figures show house prices in the North East are higher than they were a year ago, despite a national dip in January.

Nationally, prices fell by 0.7% month-on-month in January in the first drop since September, although at £234,000 on average prices are still 2.2% higher on an annual basis, the ONS said.

Experts said that the ONS figures suggest that house prices are likely to see a modest upswing over 2013.

All regions in England recorded year-on-year house price growth, with the East and the North East also recording relatively strong rises, at 3% and 2.2% respectively.

"House prices could well eke out a small gain over 2013 supported by modestly increased activity.

"However, it remains hard to see house prices making a decisive move upward in 2013 given the still difficult and uncertain economic environment."

– Howard Archer, chief UK and European economist for IHS Global Insight

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House prices fall in the North East

House prices saw a national uplift for the first time in nine months in February but fell by 0.2% in the North East, figures suggest.

In the North East and Yorkshire the number of new buyers registering with agents rose by less than 5% over February, way below the 14% national average.

Hometrack said it is unclear whether this was due to the recent bad weather or if it is a more serious sign of weak levels of demand from would-be buyers.

Prices increased by 0.1% month-on-month across England and Wales, marking the first upturn since May last year.

The market saw a seasonal bounce back in activity in February across the country, with a 14% increase in new buyers registering with estate agents and an 8.7% rise in the number of new homes listed for sale.

"Prices remain under downward pressure in northern regions where the trend is tipped towards price falls."

– Richard Donnell, director of research at Hometrack

Highest monthly house prices in the North East

The Land Registry has revealed that the North East recorded the highest monthly house price rise across England and Wales in November - with a 2.4% increase during the month.

On a year-on-year basis, the region has also seen the biggest fall, with a 2.9% drop taking average prices to £98,304.

Across England and Wales, house prices increased by 0.3% month-on-month in November to reach £161,490, pushing them 0.9% higher than a year earlier, the Land Registry said.

But sales were more sluggish, with 57,971 transactions taking place between June and September 2012, representing a drop of around 7% on the same period in 2011.

"Rising national house prices will provide cheer for homeowners who have seen their equity dwindle since the initial credit crunch, but the falling number of moves taking place highlights the topsy-turvy nature of last year's housing market.

Even as late as September, the market was struggling to come to terms with distractions earlier in the summer, which hampered the number of buyers in a position to finalise moves in the month.

But recent improvements in mortgage lending, combined with rising national house prices point towards a more positive end to the year and start to 2013."

– Peter Rollings, CEO of estate agent Marsh & Parsons

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