Business & Economy
Demand for property in Newcastle has more than doubled in the last year
September 10, 2020
New research from real estate website Zoopla shows that demand for property in Newcastle has surged by 158 per cent in the last twelve months.
Zoopla’s Newcastle House Price Index studies multiple local housing trends and prices on an annual basis.
The data shows that the average house price in Newcastle is now £126,700 – a 2 per cent rise year-on-year.
The supply of housing is not keeping pace with the growth in demand though, with the number of properties available to purchase rising by just 11 per cent since July 2019.
When it comes to what home buyers are looking for, gardens and garages are the two most popular Zoopla search terms in Newcastle. Three bedroom semi-detached homes are the most searched for property type.
While Newcastle’s house prices have risen strongly in the last year, the 2 per cent inflation rate is slightly below the national average (2.5 per cent).
Moreover, prices in Newcastle have risen cumulatively by 8.2 per cent in the last five years, compared to 18 per cent nationally.
The average length of time it takes to sell a home in the city is 41 days, which is also longer than the national figure (27 days).
Martyn Crinson, director at Bowson, an estate agency in Newcastle, said: “The Zoopla data supports what we’re seeing right across Newcastle.
“We’re always busy as an agency and we’re always active, but since the lockdown restrictions have started to ease, we’ve seen an increase in enquiries from buyers and tenants.
“At the moment, there’s a steady flow of business but the issue we’re encountering now is supply of properties to let and for sale.”
“Demand is definitely exceeding supply which means sellers and landlords need to be flexible when it comes to showcasing their property, in order to allow easy viewings.
“Technology can help with this. We do 360-degree tours for many of our properties and these are increasingly popular with tenants & buyers.”
Gráinne Gilmore, head of research at Zoopla, added: “Buyer and tenant demand has surged since the housing market re-opened after lockdown in Newcastle.
“Buyer demand between May and June more than doubled compared to the same period last year, while demand from those in the private rented sector is up 85 per cent.
“However, this rise in demand is not being matched by supply, which is putting upward pressure on sales pricing and on rents.”