House prices in North East surge over 23% since 2020, latest data reveals

An analysis of annual average prices from HM Land Registry by Capital Letters has revealed that average house prices in the North East rose by 23.12% between 2020 and 2024.

The average price of a home was £123,916 in 2020 and that has increased to £152,572 in 2024.

The rise is continuing according to the latest figures, as between 2024 and early 2025, the average house prices increased by 6.69%, reaching an average price of £162,779 according to latest figures.

In 2022, the North East had a high proportion of homes deemed affordable, with 49.9% of properties sold for less than five times the average local earnings.

Steven Strachan of Capital Letters offered advice on the buying process for those who are considering investing in a home in these areas, “With the right preparation and advice, securing an affordable property can be a smart and rewarding move, whether you’re stepping onto the ladder or expanding your portfolio."

How to Buy a House

1. Arrange a Viewing

“It’s important to view the property in person, ideally at different times of the day. Ask about the neighbours, running costs and any recent work. Take photos and note any damage, repairs needed or red flags about the property.

2. Do Your Due Diligence

“Research the area and local amenities such as transport links, schools and crime rates. Visit the council’s website for future development plans. Look up the property's history through Rightmove and Zoopla. Whether you plan to live there long term or rent it out, it’s important to consider the potential rental yield.”

3. Be Financially Savvy

“Get a mortgage in principle to show you’re a serious buyer. Make sure you have funds set aside to cover the deposit, legal fees, surveys and stamp duty. If you are a cash buyer, it is important to ensure that the funds are accessible.

4. Instruct a Conveyancer or Solicitor

“Hiring a conveyancer or solicitor early in the process ensures that all legal aspects of your property purchase are handled efficiently. They will carry out local authority searches, review contracts, liaise with the seller’s solicitor, and register the property with the Land Registry. Choose a solicitor experienced in property transactions and check their fees upfront to avoid unexpected costs.

5. Make an Offer

“Do your homework and compare the asking price to similar properties in the area. If you’re in a strong position, for example, a cash buyer or chain-free, be sure to mention this. Avoid going in with your highest bid first.

6. Arrange a Survey

“A survey can uncover costly issues and give you leverage to renegotiate the price if problems are found. A full structural survey is advised for older or more complex properties whilst a home buyer report is appropriate for newer properties.

7. Special Note for Properties in Scotland

“If you are buying or selling a property in Scotland, a Home Report is a legal requirement. The report has three parts, a single survey, an energy report, and a property questionnaire.

8. Finalise Your Mortgage and Exchange Contracts

“Submit the full application with property details and supporting documentation. The lender will also do a valuation to make sure the property is worth what you are paying. Once all checks are complete, contracts are signed and exchanged. The deposit will be paid; this is usually 10% of the purchase price which makes the purchase legally binding.

9. Completion Day

“On this day the remaining money is transferred, and you get your keys. The property is officially yours!

10. Settling In

“It's now time to arrange those all-important utilities, council tax and broadband. If it is going to be a home, now's the time to start planning those personal touches.

Steven Strachan of Capital Letters offered his final thoughts on the buying process saying, “Buying your first home can feel overwhelming but understanding how the process works is key to getting on the property ladder.”