The North East boasts an array of hidden gems within the UK’s buy-to-let market. Fuelled by affordable housing and a growing demand for rental properties, prospective landlords should consider the region when looking to start a property venture. Although capital appreciation has slowed down recently, this has kept housing affordable following year-on-year rises over the previous five years. Therefore, this is the perfect opportunity for landlords to build up their portfolio and diversify rental income.
Unsurprisingly, many of the most notable buy-to-let hotspots fall in Newcastle. The NE1 postcode offers relatively inexpensive house prices for a city centre area, (Zoopla: £174,449) which in turn leads to impressive rental yields of around 5-6%. In nearby NE2, although average prices are more expensive (£306,387) sought-after properties in Jesmond and Spital Tongues still produce attractive yields. In contrast, areas such as Byker and Heaton that lie with the NE6 postcode are far less expensive, producing some of the biggest profits in the UK for landlords. Lying in close proximity to the city centre with good transport links and amenities nearby, the area has attracted a large influx of tenants in recent years. Yields can reach as high as 8-10%. Sources: This is Money & TotallyMoney.
Gateshead solidifies the North East’s position as a buy-to-let haven for savvy investors. Just a short hop away from Newcastle city centre on the Metro, statistics from Zoopla show a healthy return on investment. For 1 and 2-bedroom properties in particular, yields can range between 6-8%. The NE8 postal area has benefited from cumulative urban regeneration over the past few years and this doesn’t appear to be slowing down any time soon. A further £1.5 billion will be injected into the local economy over the next 24 months, with the prominent Gateshead Quays set to receive a £200 million investment alone.
Invest in the North East
North East property should be at the forefront of your mind before any future investment. As well as consistently high returns across the region, a recent study by BDRC Continental and BM Solutions shows that tenant demand here experienced the highest increase of any UK region at the end of 2017. If you’d like to capitalise on this growth, please get in touch today. Even if you aren’t local to the area, our team are born and bred in the North East and can advise on the most effective short and long-term investment strategy.