North East New-Builds Prices up 33% in One Year
- House prices in the North East are 7.9% higher than one year before.
- New-builds are up 33% and pre-existing homes up 5%.
- Land Registry data shows sales volume is still well below normal levels.
- Property prices in the North East peaked in December and will likely break records this spring/summer.
- Newcastle remains the most expensive district to buy a home in the North East. County Durham is the cheapest.
- Darlington has the lowest crime rate.
- Hartlepool has the greatest 10-year property price growth. Year-on-year, it's Middlesbrough.
- Across the North East, house prices are expected to increase 28.2% over the 5 years to 2029 (Savills).
Are house prices going up in the North East?
Average house prices across Northeast England have risen 7.9% since the same time last year, ahead of England and Wales, at 5.2% house price growth in the same period.
Average house prices in the North East peaked in December 2024 at £161,142 before falling slightly to £160,452 in February. We expect to see more record-breaking highs as sold prices for the spring are released by the Land Registry.
Worst December for North East property sales since the Credit Crunch
December saw just 1,967 property sales across the region, 32% down on the previous December. Monthly property sales in the North East haven't been this low since December 2008, when they fell to 1,710.
We expect spring data to show the market picking up again since the February base rate fall, but changes to Stamp Duty Land Tax effective from the 1st of April will continue to affect affordability and limit movement in the property market.
Will there be a UK recession in 2025?
The Quarterly Economic Forecast (QEF) predicts the UK economy will grow by 1.3% in 2025 and 1.5% in 2026. Source: British Chambers of Commerce (BCC).
This, however, is well below the pre-pandemic average. NEISR estimate that Britain's poorest households will not recover fully until 2027.
How does the Bank of England affect the North East Housing Market?
Borrowing has been returning to a more affordable level, but very slowly. The February cut to 4.5% means that Mortgage rates are lower already, and America's influence on our economy is likely to lower inflation, allowing for a further cut to 4.25% on the 8th of May.
As the market begins moving again, prices will be driven gently upward, particularly in more affordable areas such as the North East. Oxford Economics predict the base rate will eventually fall to 2.5% in 2027.
Are you thinking of buying or selling a property in the North East?
Darlington has the most active property market YoY
Sales volume across the North East is -32% year-on-year (YoY), but Darlington is going strong; the only local authority with volume growth, at +7% on the previous December.
Darlington has the lowest crime rate in the North East, and average house prices are £129,835 cheaper than England and Wales as a whole.
'Darlo' is a pretty market town on the River Skerne, 15 miles west of Middlesbrough and 20 miles south of Durham, once an important centre for railway carriageworks.
The 32% drop across the North East is steeper than the national average, down by 26% overall. This compounds an already dampened market; leaving the North East 42% down versus December 2019, before COVID-19 affected the market, slightly better off than England and Wales, down by 46%.
Are houses in the North East expensive?
Average property prices in North East vary by district from £136,182 to £203,848.
Average house prices in Newcastle are highest at £203,848; 27% more expensive than the average for the North East region (£160,452), but 29% cheaper than the average for England and Wales (£286,032).
Newcastle is a cathedral city and has the biggest population in the North East. Once the biggest coal port in the country, Newcastle fuelled the Industrial Revolution, and later, became home to the first lightbulb factory, after the invention of the lightbulb by Joseph Swan.
Nearby on the coast, Tynemouth, and Whitley Bay are even pricier. South Shields is much more affordable; or, 13 miles north of the city, Blyth.
Between the city and the sea, there are more affordable suburbs, such as Wallsend, Jarrow and Longbenton.
Where is the cheapest place to buy in the North East?
The cheapest homes overall are in County Durham (£136,182); 15% less expensive than the average home in the North East and 52% less than the average across England and Wales.
As well as Durham, county Durham includes Bishop Auckland, Billingham , and Consett.
County Durham's lead comes from the lowest average prices of detached (£236,164) and semi-detached (136,160) homes. However; the cheapest terraced homes are in Hartlepool (£105,215), and the cheapest flats and maisonettes are in Middlesbrough (£77,527).
Records broken for house prices in the North East
The average house price across England and Wales broke previous records for four months in a row, from November to February, with every area in the North East reaching its record height within the same period.
The latest average sold prices released by the Land Registry are from February; we can expect many of these highs to be beaten (or have been beaten already) in the spring/summer of 2025.
Savills predict a strong 5% average growth across the North East for 2025 and an even stronger 6.5% growth next year.
Middlesbrough property prices soar
Middlesbrough saw a huge 10.6% year-on-year price growth, more than double the 5.2% average for England & Wales. Runners-up were Hartlepool (+10.3%) and Sunderland (including Washington) (+9.4%). Gateshead (3.4%) fell below the national average, alongside Stockton-on-Tees (4%), and Redcar and Cleveland (4.6%).
The North East property market has been outperforming the rest of the country for price growth with increasing margins as buyers relocate for more affordable locations under the cost of living crisis, aided by increased remote working since the pandemic.
Long-term North East property market investment
Hartlepool has the strongest 10-year price growth at 53%, the only area in the North East to beat the national average of 52%. Hartlepool is the second most affordable borough in the region; a port town founded around a monastery in the 7th century, Hartlepool was a major industrial centre for shipbuilding in the First and Second World Wars.
Hartlepool is closely followed by North Tyneside (+50%), then County Durham and Northumberland (+48%), South Tyneside (+44%), Newcastle (+42%), Sunderland (+41%), Middlesbrough (+40%), Darlington (+39%), Redcar and Cleveland and Stockton-on-Tees (+38%).
New homes in the North East are now 118% more expensive than existing properties
Brand new houses have always been more expensive than existing ones. However, the difference remained around 70% until it hit 80% for the first time in 2023. Since September, the record has been broken every month: 83%, 86%, 104%, and then up to a massive 118% in December. New homes are now worth over twice as much as pre-existing homes in the North East.
The average cost of a new build in the North East sky-rocketed by 33% in 12 months.
This unprecedented increase is likely caused by increased building costs, developers building larger homes for greater profit margins, and the cost premium on new builds.
If you exclude newly-built properties, you can see price growth on existing properties in the Northeast has been more modest and sustainable. This is great news for hopeful first-time buyers looking to buy a pre-existing home and are still saving for a deposit, as existing property in the North East is only 5% higher than 12 months prior.
What is the safest borough in the North East?
Darlington, Newcastle, and Durham are the safest parts of the North East. Although Middlesbrough has the highest crime rate, the number of crimes has fallen significantly since it peaked in mid-2022. However, the crime rate remains higher than it was in 2017.
Should I buy a house in the North East?
The North East is an excellent location to buy a home:
- Affordable homes
- Seaside charms
- Strong price growth
- Major investment in infrastructure, including a ‘green, integrated transport system’
- Employment opportunities in health, education, manufacturing and retail
- Stunning Northumberland National Park
- North Pennines National Landscape
- Hadrian's wall
House prices are still rising, and the cost of borrowing is likely to fall further as the Bank of England aims to support the economy against instability from the US. If you can afford to buy before prices increase further, you'll likely be able to switch to an even more affordable mortgage rate in 2027, by which point your investment should have appreciated, along with the equity you'll build each month by making your mortgage payments, instead of throwing money away on rent.
Across the North East, house prices are expected to increase 28.2% over the 5 years to 2029 (Savills).
If you are renting and can afford to buy at the current rate of interest, this may be a much more desirable option than saving for a bigger deposit, as rents are still rising, whereas mortgage rates are likely to fall.
However, if you are stretching your budget to buy in the North East, consider saving for a bit longer or opting for a more affordable borough. If the base rate rises again, you may be unable to keep up with your monthly repayments when your fixed rate ends.
Worse yet, if prices fall, you could end up in negative equity, owing more money than your home is worth. Buying a home with a mortgage always comes with risks. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you are ready to buy a house in North East England or the surrounding area, we can handle your purchase with a dedicated SAM Conveyancing Consultant to manage your transaction alongside one of our hand-selected panel solicitors.
"Stability is the focus, and the market needs to find its feet again after the stamp duty change on the 1st of April."
- Andrew Boast FMAAT MIC
CEO and Author | SAM Conveyancing
Sources: Latest data from - Gov.UK, Bank of England, UK House Price Index, Savills.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Without Killing Anyone
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With more than two decades’ experience in the conveyancing sector and over 50,000 successful client moves under his belt, Andrew shares insider tips and advice to empower you as a buyer, giving you the tools to make the best decisions for your circumstances and ease the chaos.
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