Major Growth for the Tyne and Wear Property Market
- For four consecutive months, every district in Tyne and Wear has seen positive property price growth, far outperforming the national average.
- March saw the third worst month on record for property sales volume in the region.
- House prices in Tyne and Wear are now Just 2% below their record high of September last year.
- Homes in North Tyneside remain the most expensive; £67,425 higher than the average cost of a home in Sunderland.
Worst month for property sales in Tyne and Wear since lockdown
489 properties were sold in Tyne and Wear in March. The 'normal' monthly sales volume has been between 1,000 and 1,500 over the past ten years; only national lockdown and the 2008 recession were able to dampen the property market to beat this low.
This is 53% down on the number of transactions for the same month last year, which is slightly better than England & Wales as a whole, down by 57%. While this latest Land Registry data is published with a 5-month delay, the government publish estimate numbers, "the provisional seasonally adjusted estimate of the number of UK residential transactions in June 2024 is 91,370, 8% higher than June 2023" . This reflects the increase in sales volume we've seen here at SAM throughout the year so far.
Are house prices falling in Tyne and Wear?
House prices in the region are not falling. The graph below shows fairly minimal monthly changes in the average price of a home in the region. This stability is welcome after an uncertain period, and we can see healthy & consistent price growth versus last year.
| Property Type | 2023 | 2024 |
| Detached Properties | £302,694 | £315,211 |
| Semi-detached Properties | £180,860 | £185,769 |
| Terraced Properties | £151,658 | £154,645 |
| Flats & Maisonettes | £111,413 | £112,639 |
(Source: HPI Data for May 2024)
How does the Bank of England affect the Tyne and Wear Housing Market?
According to research from RICS, estate agents are the most optimistic they've been about the housing market since before the pandemic, expecting to sell more property over the past three months than they are currently. This is driven by the recent base rate cut to 5%. Typically, more activity in the housing market drives house prices upwards.
House prices tend to rise with inflation (2021) but fall when the base rate comes up (2023); the higher cost of borrowing has meant that buyers have less to spend and homeowners are reluctant to move, keeping prices down and markets slow.
The graphs above show that the higher cost of borrowing has suppressed house price growth. This is the first base rate fall in over four years.
Capital Economics' forecast that the base rate will fall to 4.75% by the end of this year and reach a hopeful 3% in 2025.
Will there be a UK recession in 2024?
"The Quarterly Economic Forecast (QEF), expects the UK economy to grow by 1.1% for 2024, with the projection for 2025 remaining at 1.0%. The economy is expected to grow by 1.1% in 2026, a minor upward revision." - 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.
Would you like conveyancing services for a Tyne and Wear property?
North Tyneside and Sunderland least affected by dampened property market
Sales volume across the country crashed this winter, and Gateshead and Newcastle fit the pattern, 57% down on the same month last year. North Tyneside, however, was a little more resilient against the market slump, with sales volume 49% down, followed by Sunderland, at 52% down.
North Tyneside, situated on the River Tyne and North Sea Coast, encompassing Wallsend, North Shields, Killingworth, Tynemouth and Whitley Bay, among many other towns and villages. Visit North Tyneside promote the region for its "award-winning beaches, award-winning food, fun family events, brilliant attractions and welcoming places to stay."
House prices in North Tyneside are 49% higher than in Sunderland
The average home in North Tyneside costs £204,325, which is a whopping 1.5 times more expensive than the most affordable district in the region, Sunderland.
Sunderland has the most affordable property in Tyne and Wear
| Property Type | 2023 | 2024 |
| Detached Properties | £249,177 | £253,506 |
| Semi-detached Properties | £141,936 | £142,822 |
| Terraced Properties | £112,361 | £112,010 |
| Flats & Maisonettes | £85,860 | £83,445 |
(Source: HPI Data for May 2024)
Sunderland is a port city at the mouth of the River Wear, with a history of coal, salt, and glass exportation, as well as a booming shipbuilding industry in the 19th Century. My Sunderland promotes the city for its diverse appeal: "From sitting at the heart of an unbeatable cultural and business hub to the great sights, amenities and experiences that reside here, it's easy to see why so many people choose to call this city home."
The graph above shows comparable data on how each district has fared in terms of annual growth. Below, however, you can see that each district has peaked at different points over the past two years. This table shows how current property prices in each district compare to their highest-ever average prices.
Location | Peak Month | Peak Price | May 2024 | % +/- |
| Tyne and Wear | Sep 23 | £174,426 | £170,845 | -2% |
| Gateshead | Aug 23 | £159,645 | £157,614 | -1% |
| Newcastle upon Tyne | Dec 23 | £195,155 | £193,353 | -1% |
| North Tyneside | Aug 23 | £208,659 | £204,325 | -2% |
| Sunderland | Sep 23 | £146,223 | £136,900 | -6% |
Newcastle wins on property price growth
Newcastle upon Tyne has had the most recent peak in December and is just 1% away from setting a new record-high average price. If you can afford to invest in Newcastle, this district currently has shown the strongest growth in Tyne and Wear for seven consecutive months, with no signs of slowing down.
Zoopla say Newcastle is a great place to live; "The city is brimming with culture, heritage and a sense of community. With top-notch schools and friendly locals, living in this iconic North East city comes with a welcoming and inclusive atmosphere that makes you feel right at home."
New homes in Tyne and Wear worth 76% more than existing property
The average price of New Builds across the country has been soaring since the national house price peak of 2022, while existing property stays fairly steady.
New build house prices in Tyne and Wear are no exception, now a massive 76% higher than existing properties.
"This disparity in price will fuel nearby house prices up as estate agents use these potentially over-priced local comparables when setting sale prices for existing properties in the local area." - Andrew Boast
This could mean new build developments in your immediate location will inflate the value of your home. Great news if you're already a homeowner; bad news if you're a first-time buyer.
Should I buy a house in Tyne and Wear?
Tyne and Wear is an excellent location to buy a home:
- Affordable homes
- Seaside charm
- Rich industrial history
- Strong forecasted growth on your investment
- Beautiful countryside
- Prestigious university & excellent schools
House prices are back on the rise and the cost of borrowing has just begun to fall. If you can afford to buy in Tyne and Wear before prices increase, you'll likely be able to switch to a more affordable mortgage rate in a couple of years, by which point your investment will hopefully have appreciated in value.
Across the North East, house prices are expected to increase 25.2% over 2024-2028.
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 Tyne and Wear, consider saving for a bit longer. We may not be out of the woods yet, and if the base rate (and mortgage rates) rise, you may not be able to keep up with your monthly repayments. Worse yet, if prices do fall, you could end up in negative equity. 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 Tyne and Wear 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.
"I am more than hopeful that we are seeing a strong housing market come to life. There is a delay in the sales being agreed upon and coming to completion in the Land Registry data."
- Andrew Boast FMAAT MIC
CEO and Author | SAM Conveyancing
Sources: Latest data from - Gov.UK, Bank of England, UK House Price Index.
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.
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