New research by Savills reveals that the housing market in County Durham is on the rise and will be boosted further by the region’s positive employment growth, with prime property values across the north of England expected to rise by 18.2% over the next five years.
Sophie Chick from Savills residential research team, comments: “We forecast that prime values across the north of England, including Darlington and the surrounding villages, will grow by an average of 18.2% over the five years to 2020 as the local economies strengthen and buyers become more aware of the comparative value the area has to offer.”
In Darlington, the housing market is yet to see prices recover since the 2008 credit crunch as local buyers remain price conscious. On average, house prices are -23.6% below their 2007 peak in line with the average for the north east. Despite this, there are pockets in and around Darlington which are bucking the trend including central Darlington and the village of Middleton St George which have enjoyed a strong market over the last five years, seeing growth of nearly 25%.
The research shows that in the 15 months to March 2016, the average sale price in Darlington was £148,000, which is in line with the average for the north east. The most expensive areas are situated to the south west of the town centre, with Blackwell having an average sale price of £278,000 and a £246,000 average in Hummersknott.
Melissa Lines, head of residential at Savills Darlington says: “Despite a turbulent local market over recent years, we have now started to see signs of recovery. Darlington’s West End continues to be a desirable location amongst buyers and villages on the outskirts of the town including Hurworth, Croft and Middleton St. George are particularly sought after at the moment, particularly amongst young professionals. This may be explained by the superb amenities, strong transport links, good schools and thriving local communities on offer.
“We expect this trend to continue and to ripple out to areas such as Middleton Tyas, Barnard Castle and Richmond due to the impending expansion of the A1 which will further improve access to York, Leeds and Newcastle.”
Sophie Chick adds: “The Darlington market is predominantly local with the majority of buyers moving from within the region. The relatively strong employment in the town plays an important role in attracting buyers with 64% of people living in the town also working locally*. In contrast, the strong transport links to Newcastle and Durham are resulting in more people seeking better value properties in Darlington and then commuting to other nearby cities.
“The prime housing markets of Darlington and the surrounding villages are largely dependent on wealth generated in the local economy. As economic recovery spirals from London and the south east to the north of England, the prime housing market is likely to benefit from a continuing improvement in buyer sentiment. We expect prime urban markets such as central Darlington to continue outperforming their neighbouring villages and rural areas as the trend for urban living remains popular.”
Click here to view the full Spotlight: Savills York and Darlington Residential Offices research report.
