Great News for the North East Property Market Despite Brexit Fears

Posted on September 27, 2016

The Brexit has dominated headlines across multiple industries, but one sector that has been thrown into the spotlight has to be ours. Our team of estate agents is constantly asked by buyers, sellers, tenants and landlords alike what’s in store for the North East property market as we leave the European Union and adjust to life ‘on our own’, but a recent study by consultant Oxford Economics means there is good news on the horizon with house prices throughout the region set to rise over the next 15 years.

Local house prices to double by 2030

Whilst the market down south, and in London in particular, is always experiencing dramatic fluctuations, the story has been very different in the North East of England and surrounding regions, where slower progression has been felt. Today the average price of a house in the North East is £162,345, a figure that represents an impressive 95% increase compared to average house prices in 1985. Researchers at Oxford Economics forecast that this price will double by 2030 to £277,558, which means calling on our estate agents to make a property purchase could be a rather profitable investment.

The study has not only increased buyer confidence in what is an uncertain time for our country, but could inspire a business boom, meaning our commercial and residential clients could benefit as a result as business owners and homebuyers look for a more desirable place to work and live.

How does this compare to prices in the South East?

As always the divide between North and South still remains and in London after this same 15-year period the average home will cost £1 million. The rest of the UK will also see prices rise at a faster rate, and on average the cost of a home will rise by 19% to £536,338.

Again this divide may not be a bad thing for the business community and as London wages struggle to keep up with the living cost surge, our region could benefit from what Oxford Economics is referring to as ‘reverse brain drain’. The reverse brain drain will result in an increasing number of people and businesses being priced out of their South East base and in search of more affordable premises travelling away from the capital.

Want to capitalise on the growth potential of the commercial or residential property market? Our Sunderland estate agents can assist with a range of high quality lettings and sales services. Browse our website or contact us direct for further details.