southtyneside.info
Housing, Environment and Transport
Version 4 , January 2008
Rate of change in house prices in the borough compared to rate of change in house prices across Tyne and Wear
The Index of Multiple Deprivation 2004 has information on 'Access to Services' and 'Barriers to Owner Occupation'. This Index is based on 2001 data and suggests there were few difficulties in accessing services or barriers to entering the housing market at that time.
By 2004 the situation had changed :
“For many people, housing has become increasingly unaffordable over time. The aspiration for home ownership is as strong as ever, yet the reality is that for many this aspiration will remain unfulfilled…”
Source : Barker K (2004),Review of Housing Supply, ODPM
The growth of regional economies is in part driven by a flexible supply of labour. A ready supply of labour requires a responsive housing supply. Yet with higher significant numbers of workers unable to buy a home in an area where they work. So poor affordability has consequences not only for individuals and families, especially the younger age groups, but for the economy and society as a whole.
(Cited in “Affordability Matters”, National Housing and Planning Advice Unit, June 2007)
Since 2001, however, South Tyneside has experienced an average yearly house price rise of about £12,354 / year, with prices more than doubling (120%) in five years.
This rise in price for South Tyneside is the lowest in Tyne & Wear, average house price in Tyne & Wear rose by 135% between March 2001 & December 2006, in the North region ( that is, the North East & Cumbria) house prices rose by 129%.
Despite a slight easing in house price rise at the end of 2006, the pressures on the housing market still remain, “demand for housing, driven by economic and population growth, continues to outstrip available supply” (in England). (NHPAU,2007)
| Area | March 2001 House Price | December 2006 House Price | Jun 2007 House Price |
Change Mar 2001 - Jun 2007 |
% Change Mar 2001 - Jun 2007 |
|---|---|---|---|---|---|
| Gateshead | 50,167 | 117,819 | 122,554 | 72,387 | 144.29% |
| Newcastle | 61,759 | 140,110 | 145,203 | 83,444 | 135.11% |
| North Tyneside | 58,946 | 142,065 | 145,296 | 86,350 | 146.49% |
| South Tyneside | 53,825 | 116,606 | 122,365 | 68,540 | 127.34% |
| Sunderland | 50,344 | 116,106 | 120,676 | 70,332 | 139.70% |
| Tyne & Wear | 55,606 | 128,790 | 133,642 | 78,036 | 140.34% |
| North | 55,742 | 129,985 | 134,723 | 78,981 | 141.69% |
| Source : Land Registry Website - Data for Jan/Mar 2001, Oct/Dec 2006 & April/June (latest data) | |||||
Between September 2006 & December 2006 the average house price in South Tyneside fell slightly at year end. However, in February 2007, they rose again, reaching a new high of £122,365 in June 07, with all property types showing a steady rise.
| Type of Property | March 2001 | December 2006 | June 2007 |
Change Mar'01 - Dec'06 | % Change Mar'01 - Dec'06 |
|---|---|---|---|---|---|
| Detached | £117,289 | £254,093 | £266,643 | £149,354 | 227.34% |
| Semi-Detached | £65,764 | £136,391 | £143,127 | £77,363 | 217.64% |
| Terraced | £45,459 | £97,692 | £102,517 | £57,068 | 225,56% |
| Flat/Masionette | £36,506 | £64,317 | £77,988 | £41,482 | 213.63% |
| Average House Price | £59,159 | £116,606 | £122,365 | £63,206 | 206.84% |
| Source : Land Registry Website – Data for Jan/Mar 2001, Oct/Dec 2006 & April/June 2007 (latest data) | |||||
The Annual Survey of Hours and Earnings (ASHE) for 2006 gives a median wage in South Tyneside of £306.60 per week or £15,943 per year. These figures are “gross” that is before tax. but 20% of survey respondents earn less than £177 / week or £9,204 per annum. The average house price is therefore over 14 times the annual income of this group (Source: ASHE 2006). The issue of affordability of housing, particularly for first-time buyers is a very significant issue for Borough residents.
Ensuring people have a good choice of quality homes (in accordance with the Government's Planning Policy Guidance 3 ) is a key aim in South Tyneside's Community Strategy (A1). The Council's Housing Strategy Statement will set out the Council's key policies for meeting housing needs in the Borough.
Links to the Community Strategy
This information impacts directly on the following Community Strategy aims:
- Balancing the supply and demand for housing, improving housing choice and housing options for all residents
- A4 - improving planning and urban design