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North East housing prices fall by 0.3%

North East housing prices fell by 0.3% in October, the first fall in at least 6 months according to market analysis collected from the KIS Intelligence Service.

Areas where prices experienced the biggest fall in price were reportedly in Seaham (-2.9%), Sunderland (-2.8%), Blyth (-1.8%) and Gateshead (-1.5%).

Killingworth was found as the “Best to Buy” area as prices rose by nearly 5% in three months.

House prices in Killingworth have risen by 4.7% in the last three months, and the town is the lowest 3% of areas in the country for crime, and top 25% for the standard of its living environment.

43.4% of people in Killingworth are classified as families with no dependent children and 23.5% of residents have degrees or higher qualifications, suggesting popularity with first-time buyers and young professionals.

Data collected showed that average house price in the region now stand at £157.43k, £219 lower than in September.

Moreover, it costs £592 per calendar month to rent a home in the North East,£13 more than last month. Blyth and Easington are the cheapest places to rent a home.

Average rental yields for landlords in the region are 4.6%, up 0.1% over the last four weeks.

Gateshead continues to offer the highest rates, with rental yields of 7.1%, a rise of 0.8%. Yields also rose noticeably in Cramlington (0.7%) and Morpeth (0.6%) but fell back surprisingly in Durham City (-0.7%) and sharply in Whitburn (-0.9%).

The former is particularly popular with single occupiers, with 47% of households containing just one person. 63.5% of people in Gateshead are in full time employment or are students and over three-quarters of properties are flats, maisonettes or apartments.

Branch manager of KIS North Shields, Sarah Johnstone, said: “It’s important to remember that one set of result is not the same thing as a trend, but it could well be the case that the cooling of the property market reported in the rest of the UK has now reached the North East.

“It’s even more important to remember however that even if local prices did slip in September, they are still much stronger than even six months ago.

“Gateshead is a good example of this. Down by 1.5% in September but still up by 6.8% up over the last few months.

“In fact, prices in the region are in the region of £20k stronger than when KIS Housing Now launched in April.

“What is clear is that the North East is as attractive as ever a location for property investors, with clear rising demand for good quality rental homes matched with strong rental yields, and this month falling prices too.”

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