HOUSE prices increased slightly, by 0.2 per cent, in Northumberland in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 5.7 per cent over the last year.

The average Northumberland house price in May was £181,562, Land Registry figures show – a 0.2 per cent increase on April.

For the UK as a whole, prices increased by 1.2 per cent.

Over the last year, the average sale price of property in Northumberland rose by £9,800 – putting the area 11th among the North East’s 12 local authorities with price data for annual growth.

The highest annual growth in the region was in Redcar and Cleveland, where property prices increased on average by 14.5 per cent, to £154,000. At the other end of the scale, properties in Hartlepool gained 3.3 per cent in value, giving an average price of £129,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said: “The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Northumberland spent an average of £147,100 on their property – £7,400 more than a year ago, and £24,800 more than in May 2017.

By comparison, former owner-occupiers paid £209,300 on average in May – 42.3 per cent more than first-time buyers.

Property types

Owners of terraced houses saw the biggest rise in property prices in Northumberland in May – they increased 0.6 per cent, to £141,412 on average. Over the last year, prices rose by 4.9 per cent.

Among other types of property:

  • Detached: up 0 per cent monthly; up 7.5 per cent annually; £311,756 average
  • Semi-detached: up 0.2 per cent monthly; up 5.7 per cent annually; £171,448 average
  • Flats: down 0.1 per cent monthly; up 0.8 per cent annually; £91,255 average

How do property prices in Northumberland compare?

Buyers paid 18.2 per cent more than the average price in the North East (£154,000) in May for a property in Northumberland. Across the North East, property prices are higher than those across the UK, where the average cost £283,000.

The most expensive properties in the North East were in North Tyneside – £196,000 on average, and 8 per cent more than in Northumberland. North Tyneside properties cost 1.6 times as much as homes in County Durham (£125,000 average), at the other end of the scale.

Factfile

Average property price in May

Northumberland: £181,562

The North East: £153,592

UK: £283,496

Annual growth to May

Northumberland: +5.7 per cent

The North East: +9.7 per cent

UK: +12.8 per cent