House prices reach ‘major milestone’ in north east
Published by Brian Church for 24dash.com in Housing
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North east house prices are back to pre-crash levels for the first time in a move hailed by one property commentator as "a major milestone".
Newly-released figures from the Office of National Statistics show the average cost of a home in the region is now £150,000 - the highest level since September 2008, and 14% higher than the low of £129,000 recorded in April 2009.
The figures also show that house prices in the north east fell every month in 2010 and 2011, and for six months of 2012. Prices in the region rose by 4.4% in the year to June, half as fast as the national rate of 10.2% and nearly four times slower than the 19.3% rise recorded in London.
Ajay Jagota, of sales and lettings business KIS which operates widely in the region, said: "This is a major milestone for the north east – a sure sign that confidence and momentum are finally returning to the regional economy."
He added: "If there is a cloud on the horizon, it’s the fact that wages aren’t keeping pace with house prices. If interest rates are about to rise, as is widely predicted, many households could find their finances rapidly stretched to breaking point."