News & insights
The North East is the Place to be for House Bargains
30th July 2017
Buyers in the region looking for a bargain home are in luck, according to a recent survey*.
Darlington topped the chart, with more than 45% of properties being sold for less than their asking price, with an average reduction of over £10,500. This means that buyers could land a bargain if they’re looking for a property in this area. Darlington, of course, has fantastic commuter links, with trains running regularly to Newcastle, Leeds and Manchester, as well as further to London and Scotland. This would make buying property here a great value alternative for someone working in the City.
Also featuring in the top ten locations to find a reduced price property are South Shields, Middlesbrough and Stockton-on-Tees. According to the research those buying property in Stockton could get the asking prices reduced by an average of £11,532, meaning that new buyers can really get more for their money.
From the outside, the data could be read as bad news for the market, suggesting that houses aren’t selling as well or as quickly as they should be, or that sellers aren’t getting a fair price for their houses. However, if you take the time to look deeper and compare the deductions to previous years, the average discounts remain fairly consistent, and instead suggests that the housing market is staying strong. This is particularly reassuring at the moment, following the economic uncertainties brought about through recent political activities.
It’s also great news for those people looking to get on the first rung of the property ladder, as the lower selling prices mean they need to find smaller deposits. For buyers with a greater disposable income, putting down a slightly larger deposit can open the door to better mortgage deals. Added to this, a reduction could result in a buyer being able to land a property that would ordinarily be out of their price range, meaning they might be able to afford that extra bedroom, driveway or garden which was previously out of their grasp.
I can hear you asking “how do I get one of these bargain houses?” Firstly, look at how the locations can work for you and what you need. As I’ve said, Darlington is great for commuting, as is Middlesbrough, so you’ll be more likely to get a reduced property here than somewhere that is already fairly desirable, such as Newcastle. Secondly, think about the potential of the area, and getting a reduced property before it becomes the place to be. For example, Stockton has had a lot of regeneration work done on its high street and is considered by some to an up-and-coming area. Bagging a property here with an up to 40% discount could be a fantastic investment when you come to sell further down the line.
One thing the research really highlights is that fortune really does favour the bold. Don’t be shy when putting in your offer and challenge the seller to see how low they can go. Remember, negotiation is about strategy and compromise, and if you make an offer that is too low, the worst they can do is say no, and it gives you somewhere to work from. Who knows? It could just get you a property you thought you’d never afford.
By Martin Williamson, Director and Head of Residential Property
Please note: This article is intended as guidance only. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks. In addition, no responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by the firm.