North East
The North East, in particular the city centre Newcastle market, has not been as badly affected as other northern cities by oversupply issues. Buyers can be found for most quayside apartments and whilst prices have not risen, there has been no serious deterioration. The rental market is holding up quite well. In Gosforth there is a clear oversupply and this year we have had to mark down values at Knightsbridge Court in the light of a number of forced sales creating evidence. The apartment markets in Middlesbrough and Sunderland have yet to mature and there is very little owner-occupier demand. The rental market too has yet to be tested, though we expect that it will prove to be satisfactory. Durham has a reasonably strong demographic picture and in the medium term will hold up well both in capital value and rental terms.
