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Property Market Update – January 2025

 
31/01/2025

County Durham Property Market Update – January 2025


The property market in County Durham has continued to show resilience and growth, with the latest figures from the Office for National Statistics (ONS) highlighting a strong year-on-year increase in house prices. As of November 2024, the average property price in the county stood at £139,000, representing a 7.4% rise compared to November 2023. This growth outpaced the North East as a whole, where prices increased by 5.9% over the same period.

This upward trend is encouraging for homeowners and sellers, demonstrating sustained confidence in the local housing market. Rising property values indicate steady demand, with buyers continuing to recognise the value and affordability that County Durham offers compared to other parts of the UK.

 

Rental Market Sees Strong Growth

The private rental sector has also experienced notable price increases, with the average rent in County Durham reaching £584 per month in December 2024. This marks a 9.1% annual increase, slightly higher than the 8.9% rise recorded across the North East. The continued growth in rental prices suggests a competitive lettings market, driven by strong demand from tenants.

 

Higher rents can be beneficial for landlords, providing a strong return on investment, but they also highlight the challenges some tenants may face in securing affordable accommodation. With rental values rising steadily, many may be considering homeownership as a more viable long-term option, particularly as first-time buyer activity has remained strong.

 

First-Time Buyers and Mortgage Trends

For those stepping onto the property ladder, the average price paid by first-time buyers in County Durham reached £123,000 in November 2024, up 7.8% from £114,000 the previous year. This increase suggests that first-time buyers are still actively participating in the market, despite wider economic challenges and fluctuating mortgage rates.

Homes purchased with a mortgage saw a similar rise, with the average price reaching £146,000—a 7.5% increase from November 2023. While mortgage affordability remains a key consideration, these figures show that many buyers are still confident in making a move.

 

Strong Start to 2025 for Harrington Brown

At Harrington Brown, we have seen an exceptionally positive start to the year, with our own figures reflecting strong buyer activity and increased demand for properties in our area. The average price of the homes where we have agreed an offer this month stands at £198,412, significantly higher than the County Durham average, reflecting the quality and desirability of the properties and the pocket of the North East that we represent.

Furthermore, compared to January 2024, we have recorded a 21.48% increase in market share, alongside a 21.70% rise in sales agreed (stats from TwentEA). These figures highlight the growing confidence among buyers and sellers alike, as well as the effectiveness of our proactive approach in helping clients achieve their property goals.

 

What This Means for Buyers and Sellers

For sellers, the ongoing price growth and increased buyer demand mean that now remains an excellent time to consider bringing a property to market. With supply levels still relatively tight, well-presented homes in desirable locations continue to attract strong interest. Our experience shows that competitively priced properties, especially properties that could constitute a first time buy, are receiving multiple offers, making it an opportune moment for homeowners looking to sell.

 

For buyers, while house prices and mortgage rates have seen some movement, County Durham still offers exceptional value for money compared to other regions. With our extensive knowledge of the local market, we can help buyers navigate the process and find the right property whilst helping our sellers achieve the best possible price.

 

If you’re thinking of buying or selling, get in touch with Harrington Brown today to discuss your next move. Our expert team is here to provide professional advice and guide you through every step of the process.

 

Aidan Donnelly, MNAEA

 
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