“When a town shows both rising prices and growing sales volume in this climate, that’s a signal”
– Andrew Boast – SAM Conveyancing
A new report from SAM Conveyancing reveals that the North East of England is outperforming the rest of the country in terms of property price growth, with new builds seeing a sharp 33% increase in value over the past year. This stands in contrast to other regions where the housing market has slowed due to ongoing affordability challenges.
The report indicates that, in the year leading to February 2025, house prices in the North East rose by 7.9%, significantly higher than the national average of 5.2%. The regional average sale price reached £160,452, with prices peaking at £161,142 in December before experiencing a typical seasonal dip. New figures for the spring and summer months are expected to surpass these highs.
The most striking shift in the region is in the price of new-build properties, which have risen by 33%, far outpacing the 5% rise seen in existing homes. By December 2024, the average price for a new build was £338,429, 118% higher than the average for second-hand homes, which stood at £155,009. This represents the largest price gap ever recorded in the North East.
“This level of disparity between new and existing homes is unprecedented,” said Andrew Boast, CEO of SAM Conveyancing. “It reflects a perfect storm: increased construction costs, developers focusing on larger units to boost profit margins, and strong consumer demand for energy-efficient, move-in ready homes. But there’s a flip side – many first-time buyers simply can’t afford to go near a new-build now.”
The report also highlights the regions within the North East that have experienced the most significant price growth. Middlesbrough saw a notable 10.6% increase in property prices, which is more than double the national average. Hartlepool (+10.3%) and Sunderland (+9.4%) also saw strong growth, with both areas benefiting from regeneration projects, more affordable entry points, and increasing demand from remote workers.
Darlington stood out as an exception to the national trend, with a 7% increase in completed sales despite a 32% decline in sales volume across the region in December. According to Boast, Darlington’s appeal lies in its low crime rate, good transport links, and overall market town charm, attracting buyers priced out of more competitive urban areas.
“When a town shows both rising prices and growing sales volume in this climate, that’s a signal,” Boast added. “Darlington’s low crime rate, good transport links, and market town appeal make it a magnet for buyers priced out of more competitive urban areas.”
While the North East is experiencing strong price growth, it remains the most affordable region in England. On average, homes in the North East are still £125,000 cheaper than the national average. This makes the region an attractive option for those struggling to get on the property ladder in more expensive parts of the country, particularly the South East.
In February 2025, Newcastle upon Tyne was the most expensive area in the North East, with an average house price of £203,848, while County Durham was the most affordable at £136,182. This significant range offers buyers more flexibility in choosing a property that fits their budget.
The strong growth in the North East is driven by a combination of economic, demographic, and lifestyle factors. The region’s relative affordability, coupled with the value for money that buyers receive, is attracting more people, especially those seeking additional space and better living conditions. The growth is also being supported by investments in local infrastructure, such as the Teesworks development and improved regional rail connections, enhancing the region’s long-term appeal.
The North East’s property market is not just experiencing short-term gains, as long-term trends also show strong performance. Over the past decade, Hartlepool has seen a 53% increase in property prices, ahead of the national average. Other areas with notable growth include North Tyneside (+50%), County Durham (+48%), and Newcastle (+42%). Looking ahead, Savills forecasts that the region will see 28.2% growth by 2029, further cementing its positive outlook.
“For many, the North East is no longer just a fallback, it’s becoming a first choice,” concluded Boast. “Buyers are thinking long-term, and this region offers price growth, lifestyle, and space in a way few others do.”
