The cost of buying a house in the North East has increased by over 10 per cent in the last year as the cost of living continues to soar.

New figures released by the Office for National Statistics show that North East house prices rose by 10.7 per cent in 2021.

On average prices in the region increased by £6,808 over the 12 month period, but it still remained the cheapest place in the country to buy a home with an average house price of £155,000.

Northumberland had the highest prices in the area with the average home there costing £234,410, compared to County Durham which had the lowest average prices at £152,407.

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The figures relate to the amount of money homes sold for up to the end of December 2021.

Find the average house price in your area here:

Property experts at Rightmove, who keep more up to date estimates of house prices predict that nationally they are currently increasing by 9.7 per cent.

Tim Bannister, Rightmove’s Director of Property Science, says that although prices are still rising the rate they are increasing is slowing down.

Mr Bannister said: “The exceptional pace of the market is easing a little, as demand gradually softens and price rises begin to slow, which is very much to be expected given the many record-breaking numbers over the past two years.

“When we look at the number of buyers contacting estate agents compared to 2019 or the pre-pandemic five-year average, demand is still very high compared to what was once considered normal.

“We’re hearing from agents that though they might have had slightly fewer enquirers for each property in recent months, they’re still seeing significant interest from multiple buyers and are achieving successful sales.

“Entering the second half of the year, we anticipate some further slowdown in the pace of price rises, particularly given the worsening affordability challenges that people are facing.

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“We expect this to bring the annual rate of price growth down from the current 9.7% towards the 5% increase that Rightmove predicted at the beginning of the year.

In Darlington prices actually fell by £1,683 on the previous year and the average cost of buying a home in Stockton fell by a tenner.

New figures released this week also revealed the average cost of renting had increased by 2.7 per cent in the North East in the 12 months up until May, just under the English national average of 2.8 per cent.

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