North East house prices have enjoyed a Brexit boost, performing strongly in the run-up to and aftermath of the referendum over the UK’s EU membership.

Research from North East sales and lettings firm KIS reveals property prices in the region rose 4.8% over the past four weeks, adding £8604 to the value of the typical home.

The rise follows a rise of 0.4% recorded in May and means that house prices across the region are now positive over the course of 2016, having fallen by 3.1% in January and 4% in April.

The average North East house is now valued at £165,039 with prices 6.5% higher than those recorded in June 2015.

House values grew in every single one of the twenty areas surveyed, with rises ranging from 0.7% in Gateshead to 9% in Durham City.

The strongest areas for growth included Tynemouth (7.6%), North Shields (7.5%) and Killingworth (7.2%)

The former is named this month’s “Best to Buy” due to its year-on-year capital appreciation of 12.5%, the region’s highest. Other strong performers over the past 12 months are North Shields and Houghton-le-Spring (+10.8%). Prices in Jarrow have fallen 0.8% in the same period.

The average North East rent rose £10 per calendar month to £580pcm in June – a rise of rise of 1.7%.

Rents in the region are now £28 a month dearer than March and have grown by 4% year on year, rising from £565 in May 2015.

The rising property prices mean the average North East rental yield falls back 0.1% to 4.3% – still up 0.3% above levels recorded at the end of the last financial quarter.

Property Expert Ajay Jagota is founder and Managing Director of North-East based sales and lettings firm KIS and creator of D-lighted, a deposit replacement insurance for private renters.

He said:

“If you listened to the way some people have been banging on in the media you’d be forgiven for expecting the Brexit vote to have had an apocalyptic impact on the North East and national housing market. But these figures prove just how wrong they were, and to me that’s no surprise at all.   

“I don’t believe there is a financial crisis around the corner and never have. Of course we saw some pretty unprecedented market volatility in the aftermath of the Brexit vote itself, but thankfully the markets have now calmed down and my prediction is from herein we can expect to see not just continuing growth but the region’s largest gains for some time.

“Buyers and sellers traditionally put off big decisions when there is electoral uncertainty and that’s bound to have happened in recent months.  But we still saw prices rising by more than seven percent in places like Tynemouth, North Shields and Killingworth. Imagine what’s possible now that uncertainty is over.

“Of course we need to be aware of the impact a financial crisis could have on the regional housing market, unlikely as it looks to me. North East house prices only returned to their pre-financial crisis levels in 2014. But rising rents and stable returns are likely to have been a driving force behind this month’s growth, with anecdotal evidence continuing to suggest that the region is continuing to emerge as a destination of choice for national property investors.

“If this is the case, the region’s property prices would be more insulated from any financial shocks than last time around, even in the unlikely event they even existed.”