By William Thornton, Head of Residential, youngsRPS
What the latest Rightmove figures tell us about the North East property market.
National property headlines rarely tell the whole story.
Rightmove’s latest House Price Index reported a 2% seasonal fall in average asking prices in August. Yet in the North East, asking prices remain 1.7% higher than a year ago.
And there are signs that the autumn market is starting with renewed momentum. Rightmove recorded a 7% increase in North East buyer demand during the first five days of September, ahead of the 5% uplift seen nationally.
For William Thornton, Head of Residential Agency at youngsRPS, the figures reinforce the importance of looking beyond national averages.
“Property has always been a local market and these figures demonstrate that very clearly. The national picture provides useful context, but it doesn’t necessarily reflect what we’re seeing here in the North East.
“There are active buyers in the market and good properties, brought to market at the right price, are attracting interest. The 7% increase in buyer demand at the start of September is particularly encouraging as we enter what is traditionally an important period for the housing market.”
More than affordability
The North East remains one of the most affordable places to buy a home in England, but price alone doesn’t explain its appeal.
Newcastle offers the employment, culture, universities and connectivity of a major regional city. Travel relatively short distances and buyers can choose from the Tyne Valley, the Northumberland countryside and coast, market towns and villages, or the communities of County Durham.
For buyers moving into the region, that can mean considerably more space for their budget. For those already here, it offers the ability to change lifestyle without necessarily leaving the North East.
William continues: “Affordability is undoubtedly one of our strengths, particularly when you compare what the same budget can buy here with many other parts of the country. But I don’t think we should define the North East simply as somewhere property is cheaper.
“Quality of life is a huge part of the equation. We have a vibrant city in Newcastle, exceptional countryside and coastline, strong communities and good connectivity. Increasingly, those are the things buyers are weighing up alongside the property itself.”
Demand beyond the sales market
The strength of housing demand can also be seen in the rental sector.
Private rents across the North East increased by 6.3% in the year to July, the highest annual increase of any English region. At the same time, an average monthly rent of £783 means the North East remains England’s most affordable rental region.
Rising rents clearly present challenges for tenants and shouldn’t be viewed as positive in themselves. What the figures do demonstrate is sustained demand for homes across the region and the importance of ensuring there is sufficient good quality rental stock available.
A market that rewards getting it right
Greater buyer choice is changing the dynamics of the sales market too.
Buyers are increasingly well informed. They know what else is available, can compare properties quickly and have more freedom to wait for the right home.
For sellers, that makes the initial approach to market increasingly important.
Rightmove reports that almost three quarters of homes sold so far this year have achieved a sale without requiring an asking-price reduction.
“This isn’t a market in which sellers need to be pessimistic, but it is one where they need to be realistic,” says William.
“Getting the price right from the outset matters. Buyers have more choice and will quickly recognise when something doesn’t represent the market.
“A strong launch, good presentation and an asking price supported by local evidence can create competition. Starting too high and reducing later can have exactly the opposite effect.”
Looking locally
There are still challenges. Mortgage costs continue to influence affordability and confidence, and Rightmove has revised its national forecast for asking-price growth in 2026 to between 0% and -2%.
But that national forecast should not become shorthand for the prospects of every regional market.
Here in the North East, annual asking-price growth remains positive. Buyer demand began September with a stronger uplift than the national average. The rental figures point to sustained demand for housing. And relative affordability remains a significant advantage.
The frantic conditions seen during parts of the postpandemic market may have gone, but a calmer market should not automatically be mistaken for a weaker one.
For buyers, there is more choice. For sellers, strategy matters. And for the North East, the fundamental appeal of the region remains unchanged.
The latest figures suggest that, in an increasingly regional housing market, the North East continues to have a compelling story to tell.
youngsrps.com