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Families paying pounds 25,000 for an extra bedroom.

HOUSE-hunting families in Newcastle are prepared to pay more than pounds 25,000 for an extra bedroom.

Yorkshire Bank have released figures showing most people are not letting rising house prices put them off when looking to start a family or move up the property ladder. The average two-bed terrace in Newcastle costs pounds 148,739 and a three-bed semi is on average pounds 173,861, a 17% jump that North-East homeowners are increasingly prepared to pay.

The biggest price increase was in York, where families could pay up to pounds 80,000 more for a three-bed than a two-bed home. Gary Lumby, Yorkshire Bank's head of retail, said: "Our research shows people are not being put off by the high price of an extra bedroom, but we are seeing homebuyers become more prudent in their purchases to ensure they can afford their increased repayments. It's crucial not to over-stretch yourself financially and the step up to a bigger home can be a big jump in price depending on where you live."

He added that just 14% of homeowners who replied to the survey said they would be put off by the rise in mortgage repayments. The majority of people interviewed said they expected interest rates would continue to rise but were not necessarily put off by this.

The figures come after a Government announcement that more affordable housing will be created to help people buy their own property.
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Publication:The Journal (Newcastle, England)
Date:Jul 16, 2007
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