Is this the UK's cheapest house?

For sale on 'Britain's cheapest street', the auction guide price is just £5,000

Limetrees Close

Property prices may have been rocketing lately, but there are still bargains to be found - and this house must surely be one of the cheapest on the market.

Going under the hammer on Thursday through agent Eddisons Property Auctions, it's got a guide price of just £5,000.

The two-bedroom semi is on Limetrees Close (pictured below) in Port Clarence, dubbed the 'cheapest street in Britain', which last year saw the sale of two other houses under £10,000.

It consists of a living room and kitchen on the ground floor, with the two bedrooms and a bathroom above. There are gardens front and back.

So why the low price? The house isn't in the best condition, but it's comparatively new and certainly isn't falling down. The problem is the area. It has poor transport links to nearby Middlesbrough and Stockton, and has a high rate of unemployment.

Article continues below

Many local houses are boarded up, and the area suffers from high levels of vandalism, fly-tipping and crime. A vicious circle has developed: the more houses that are left unoccupied, the less anybody else wants to live here.

Last year, two other properties in Limetrees Close were sold at knock-down prices, for £8,500 and £9,000 respectively. Indeed, Land Registry data shows that the street was the least expensive on Teesside in 2013, at an average of £16,714.

Nevertheless, long-time local resident Sharon Ward says the area has a lot going for it.

"It might not be much to look at round here but the community spirit in Port Clarence is brilliant," she tells Gazette Live.

She adds: "People seem to buy these property on a whim, then just don't bother with them. There is nothing wrong with the houses, but they just seem to be disowned."

Compare mortgage rates

According to research published earlier this month by the Halifax and the Empty Home Agency charity, there are currently over 610,000 empty homes in the UK. More than a third of people say empty homes are a blight on their area, and three-quarters want to see their local authority doing more to deal with the problem.

"With over 610,000 empty properties in England alone there is a real opportunity to introduce a range of incentives for owners to bring these properties back into use," says Craig McKinlay, mortgages director at Halifax.

"A lot has been achieved over the last few years, but there is a need for all affected parties to continue to work together to address the issue of empty homes."

Read more on AOL Money:

Couple's £1 Stoke home is now worth £70k

Are these the cheapest homes in Britain?

House prices climb to all-time high

Property Price Gap at Record Level