Newcastle has seen considerable regeneration in the past few years, but the northeast remains the cheapest area to buy in Britain. “Unlike London, the Newcastle market has been broadly flat for three years,” says Richard Sayer, director of agents Rook Matthews Sayer. “Where people wanted to make too quick a profit, they’ve had to wait longer to make that return.” As a result, he says, two-bedroom flats have dropped in price. Properties in the £1m-plus bracket are selling more slowly.

There are a number of other regeneration projects elsewhere in the region. The rural market remains strong. “Country houses near Morpeth and Hexham remain top-dollar territory,” says Simon Beeby, of Strutt & Parker’s Morpeth office. “In some cases, we’re beating guide prices and houses are going to competitive bidding. But a few more bullishly priced properties are sitting around going nowhere. It’s good, but it’s not runaway.”

Average property price: £128,687

Annual increase: 6.4%

Predictions: Knight Frank expects prices across the region to rise by a modest 2% this year

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