11% of homeowners in the region believe the value of their house will fall this year –five-and-a-half-times the national average, and almost double the number in next gloomiest region.
Research from Clydesdale and Yorkshire Banks shows that national confidence in the property market has slowed down over the past 12 months with fewer homeowners anticipating an increase in the value of their home compared to a year ago.
49% of people now believe their property will have increased in value in 12 months time, compared to 54% last year.
2% of people believe the value of their home will fall, but this figure rises to 11% in the North East. Scotland and the North West are the next most downbeat, with 6% of people predicting their property will lose value this year.
Only 42% of North Easterners expect the price of their home to go up this year, compared to 73% of Londoners and 62% of South Easterners. Only 32% of North Westerners are optimistic about the value of their home.
Further research from the banks shows that only 12% of people are planning to move this year, compared to 14% at the start of 2015, and 17% this time last year.
Ajay Jagota of sales and lettings firm KIS responded to the figures: “Our healthy sense of scepticism is one of many things which make the North East great, but on this occasion I don’t think people need to be so downbeat. Our most recent research showed North East house prices rose at the fastest rate for nearly eight months in June, up 0.8% in just four weeks. Over the course of last year they actually rose by 11% and it’s far from unlikely that they’ll end up having grown a similar amount by the end of this one.
Market conditions are still practically perfect for property purchasing - despite unemployment rising for the first time in two years this week just this week and the Governor of the Bank of England hinting that an interest rate rise is getting nearer and nearer, we’re still enjoying historically low mortgage rates, non-existent inflation, and rising wages.
On top of that North Easterner’s ability to buy a home is rising faster than the rest of the UK with average households having almost twice as much money left after paying the mortgage as people in London – there’s plenty of cause for optimism”.
