There is a lot to love about homes in the North East of England
For homeowners in the North East considering selling their properties, the latest housing market data brings encouraging news. As more homes become available and buyer confidence returns, the region is emerging as a pocket of resilience amidst the broader national landscape.
According to the latest figures from Zoopla, the number of agreed sales across the UK has risen by an impressive 12% compared to the same period last year. This positive trend is a testament to the balanced conditions prevailing in the market, with national house price growth remaining broadly flat at -0.2% this month.
There is optimism for the rest of 2024
Zoopla's analysts are optimistic about the future, projecting 100,000 more sales in 2024 than in the previous year, provided sellers maintain realistic pricing expectations. This outlook is further bolstered by the 32% year-on-year increase in mortgage approvals for home purchases recorded in February 2024, signalling a return to pre-pandemic levels.
However, it's important to note that while consumer confidence is improving, mortgage rates remain elevated at around 4.5%, compared to the sub-2% levels witnessed in March 2021. These higher borrowing costs are undoubtedly exerting pressure on housing affordability, acting as a drag on house price inflation.
For the average home buyer with a 70% loan-to-value mortgage, annual mortgage repayments have surged by a staggering 61% compared to three years ago, before the rise in interest rates. This translates to an increase from £7,100 to £11,400 in annual mortgage payments, with higher rates accounting for two-thirds of the escalation and the remaining third attributable to the 13% rise in house prices since March 2021.
The North East has a lot going for it
While these affordability pressures are felt nationwide, their impact has been most pronounced in southern England, where higher property values have amplified the monetary burden. In regions like the South West, South East, and East of England, homeowners are grappling with annual mortgage repayment increases exceeding £5,000, with London experiencing a staggering £7,500 rise.
In contrast, the North East and other regions with more affordable housing markets have demonstrated greater resilience, with mortgage repayment increases ranging between £2,350 and £3,900 annually. This disparity, coupled with varying household income levels across the country, has contributed to the North East's housing market outperforming many southern counterparts, where price falls are more prevalent.
Zoopla's analysis reveals that 64% of homes nationwide are currently in markets registering annual price falls, a figure that soars to a staggering 95-100% across southern England. Conversely, the North East, boasting the UK's most affordable average house price of £142,000, has emerged as a bastion of stability, with no areas experiencing annual price declines.
For North East homeowners contemplating a sale, the region's relative affordability and resilience present a compelling opportunity. As the housing market continues to navigate evolving conditions, the North East's advantageous position could prove invaluable in attracting motivated buyers and securing favourable outcomes.
Richard Donnell, Executive Director at Zoopla comments: “The rebound in sales being agreed continues for a fourth month as mortgage rates have fallen, consumer confidence improves and home buyers have a much greater choice of homes for sale. The pipeline of sales is growing and we expect 100,000 more people to move home in 2024 than last year. There is clear evidence that house prices are firming and the pace of price falls is slowing. We don't believe that prices will start to rise as buyers face much higher mortgage repayments than in the recent past. The market is adjusting to higher borrowing costs and what we need is continued price stability which will create the environment for continued growth in sales and home moves. It’s important sellers remain realistic on what they can achieve for their home."
We are here to help you move in and around Wynyard
If you are looking for help with any matter of the Wynyard property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01740 807107.
