Well let me start straight away by saying a great rule to live your life by, is to remember that if something looks too good to be true. IT NORMALLY IS!
According to the Office of National Statistics, North East house prices have grown by 24% in just one month! Recently released data from the government’s official statistics body show prices in the region rising from £98,524 in March to £121,879 in April, an increase of £23,355. This increase however is not reflected nationally. UK house prices have in contrast fallen £100,000 lower in just four weeks – slumping from £292,000 in March to just £209,000 four weeks later, with London property values falling by 13% – a drop of £66,963.
However sadly the real reason for these outstanding results is not as exciting as these figures would suggest. I believe they simply reflect the changes in the way the Office of National Statistics are now calculating average house prices. They are simply giving less weighting to “extreme valued property” which previously were clearly skewing figures.
Various industry personnel have commented on the change and as a business owner myself I am still cautious and to a certain extent, unsure in my own mind of the implications of Brexit on our local and national economies and of course in particular, our housing market. So in reality, it is purely down to a technical change with no impact on the real value of our homes. So sorry to burst the bubble.
Although as a final point, I think it is only fair to point out that this does not mean that the North East housing market isn’t as strong as it’s been in years. The ONS changes are in my opinion, very sensible and as our region tends to have fewer ultra-expensive properties than other parts of the county, they are being beneficial to the North East, by reflecting more accurately the value of our homes, compared to the rest of the country. I hope this helps to clarify the situation.
If you would like to discuss investing in the Durham property market or require any advice, help or assistance with the lettings, or management of your existing rental property or portfolio in the North East, please feel free to call me at my Durham Office on 0191 212 6970 or e-mail me on firstname.lastname@example.org