Wearside property market a mixed bag as the latest average prices are released

The gap between house prices in the South and the North of England has reached a record high
The gap between house prices in the South and the North of England has reached a record high
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Wearside house prices have fallen since last month with property values in Washington dropping by an average of 1.9%.

The average house in the town now costs £155,795, while Sunderland itself saw a drop of 0.2% to £142,455.

September saw the regional average cost of a home fall by 2.8% to £159,106 – a drop by £4,497 since August.

The figures were compiled by KIS Housing NOW (North of Watford) and comes after three successive months of growth, which had seen prices rise by 6.4%.

Property prices in Peterlee dropped by 0.7% to £96,840 while both Durham City and Seaham average values reduced by 0.5%.

But while the average home in Seaham costs just £112,991, a property in Durham City will set buyers back £218.747.

Bucking the trend, however, was Easington, where prices jumped 3.2% in the largest regional increase, to £115,782, and Houghton, which saw a boost of 2.7% to £138,456.

KIS Group CEO Ajay Jagota said: “The most likely reason for the fall is that, for now at least, the North East doesn’t appear to be suffering from the same lack of supply which is driving up prices in the rest of the country.

“Durham City is proof of that theory. It’s no secret that demand for properties in the city is emphatically outstripping supply, and no surprise that prices have risen by £19,000 in just 12 months as a result – compared to a rise of less than £200 down the road in Seaham.

“Last week I called for the Bank of England to grasp the nettle and raise interest rates now. The economy is in a robust enough position to stand it - with employment high and wages finally increasing - and waiting for inflation to catch up could mean the economy gaining too much momentum and the Bank having to raise rates higher and faster to slow it down again.

“If property prices have indeed peaked, for the time being at least, there is an even stronger case to be made for a gradual rise in interest rates to being straight away.”