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North East Property Hotspots Spark Optimism
There is little doubt that parts of our region are experiencing something of a boom in property prices, even if those surges are confined to so-called ‘property hotspots.’
Hartlepool for example has become something of a property hotspot, experiencing a 5.7% average rise, the biggest in the country, according to new figures from the Land Registry. Within the next few years there are many opportunities for the region to see property growth as a result of inward investment and development.
The logical place to start is the movement of Hitachi Rail Europe into Newton Aycliffe. Over 700 people will be employed at the Amazon Park site when it begins to build trains for the Intercity Express Programme (IEP) in 2015. The development will also create another 200 jobs in the local supply chain.
Tallent Automotive has also invested in Newton Aycliffe, building a new £8m factory and adding 100 new employees to its existing 1800 in the town. DurhamGate, near Spennymoor in County Durham, is a mixed use development that will incorporate 100,000’s of sq ft of office space, shops and leisure facilities alongside over 350 new build homes. The development is aimed at striking the perfect work/life balance, and with both Taylor Wimpey and Yuill Homes as well as national businesses on board with the project it would appear that it is likely to succeed in attracting potential investors.
House prices generally reached a two-year high last month, with England and Wales seeing a 1.1% boost compared to the same period in 2011. Land Registry figures show that London and the South East had the biggest marked growth, with price rises of 5.5% and 2.3% respectively. However, the North East slumped with a drop of 3.2%, bringing the average house price in the region down to £99,163.
However, data from finance website ‘This is Money’ predicts that by 2014 the average house price in the North East will be £155,700, up from the pre-recession average of £148,100 in 2007. More inward investment and development will put the region in good stead to ensure there is real demand for property. Our property hotspots could be the start of something much bigger and more sustainable.
By Martin Williamson, Head of Residential Property, Latimer Hinks Solicitors www.latimerhinks.co.uk
Please note: This article is intended as guidance only and does not constitute advice, financial or otherwise. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks. In addition, no responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by the firm.