Prices could react to demand and supply economics. The Darlington and County Durham property market could be heading for a price surge thanks to a slowdown in the number of properties coming to market alongside a consistent demand for property.
We surveyed a number of the region’s leading estate agents, the majority of whom believe that there has been a slowdown on the number of properties coming to market over the past two months, with the number of properties available down compared to the same time last year - perhaps due in part to homeowners reacting to uncertainty following the EU Referendum.
Common sense economics tells us that if we continue to see steady demand, coupled with a falling supply, there could be an increase in the average price of a home in the region. Good news for sellers and long-term investors alike.
The North East still has England’s lowest average property price, at around £130,000, and is also a region which has one of the lowest costs of living, meaning that owning a property here is more affordable than anywhere else in the country.
There were however words of warning from some of the agents we surveyed. A small number were concerned that sales were harder to come by as the type of property coming to market was not of the right calibre. This chimes with a recent study by property sale portal Zoopla, which found that North East property takes 61 days to secure an offer, the longest period of any English region.
We should take solace in the fact that the North East is still the most affordable region, with homeownership a very real possibility here. With the support for first time buyers and smaller developers outlined in the Government’s recent Housing White Paper, I expect we will see more first time buyers and new-build properties entering the market over the coming months, which will provide a welcome boost.
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.