Northern house prices blossom at springtime

Amanda Jarvis

May 8, 2002

Spring is traditionally a time for rejuvenation in the housing markets and in Cumbria and the North East prices have been boosted way above the usual upward trend, according to Northern Rock’s house price survey.

The bank’s latest survey over ten regions shows a rise in the average house price of 1.9 per cent in the three months to April. The previous quarter showed an increase of just 0.2.

Northern Rock’s chief valuer, Alastair Laws said: “Fairly bullish conditions are being experienced regionally and this has led to a current annual increase of 7.4 per cent in property prices across the North East and Cumbria.”

He continued: “The market is again characterised by high demand and a continuing shortage of supply with many agents reporting very low levels of properties on their books. This can have the effect of driving up the asking price at which properties come to market.”

Gateshead led the way with a 3.7 per cent quarterly increase, but North Yorkshire remained at the top of the table after a 2.5 per cent rise, lifting the average house price to £78,350. The average price in Sunderland hit six figures for the first time in the survey’s history.

Three bedroom terraces and detached, four bedroom houses saw substantial price rises of 2.87 and 2.55 per cent respectively, with two bedroom terraces showing the weakest growth at 1.06 per cent.

Laws added: “Spring is often the time when seriously minded homebuyers decide to move. Although there are indications that the rates of house price inflation is slowing in some parts of London and the South East, there is little, if any, evidence to suggest this in the North East and Cumbria where buoyant and sustainable conditions prevail.”

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