Why Newcastle and the North East Should Be in the Top 10 Areas for Buy-to-Let Investment in the UK
Colliers recently released their Top UK Residential Investment Cities 2024 report, spotlighting various cities across the UK as prime locations for residential investment. Surprisingly, Newcastle and the broader North East region did not make the list. Given the area's robust performance metrics for buy-to-let investments, this exclusion appears to be a glaring oversight.
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A Lucrative Investment Opportunity
The North East, particularly Newcastle, has consistently shown itself to be the best area for buy-to-let investment in the UK. The North East offers the highest average gross rental yield in the UK at 7.65%. Specific areas within this region, such as County Durham, Darlington, and Gateshead, offer yields as high as 7.81%, 7.52%, and 7.75%, respectively.
Affordable Property Prices and High Rental Yields
One of the main attractions for investors in the North East is the combination of affordable property prices and high rental yields. For example, the average price for a buy-to-let property in Newcastle is approximately £134,245, with an average monthly rent of £833, translating to a robust yield of 7.45%. This affordability, coupled with substantial yields, makes the North East a haven for investors looking for sustainable returns.
Moreover, the cost of entry into the property market in the North East is significantly lower compared to other regions, particularly London and the South East. This lower cost, combined with high rental demand, ensures that investors can achieve better returns on their investments. The relative affordability of properties means that even new investors can consider building a portfolio in this region without the substantial financial burden often associated with other parts of the UK.
Growing Demand and Market Stability
The demand for rental properties in the North East is fuelled by several factors. Firstly, the region is the best area for buy-to-let investment. it has seen significant economic growth and development, which attracts young professionals and students. Cities like Newcastle are home to prominent universities, increasing the demand for student accommodations, which are particularly lucrative for landlords. The steady influx of young professionals seeking affordable living options further bolsters the rental market.
Additionally, Newcastle has a vibrant cultural scene, excellent transport links, and a strong local economy, making it an attractive place to live. This desirability translates into a high occupancy rate for rental properties, ensuring consistent rental income for landlords.
Economic Growth and Infrastructure
Newcastle and the North East have benefited from various economic and infrastructure developments. The region has seen substantial investments in transport, education, and business, making it an attractive place for both residents and investors. The burgeoning job market, coupled with a high quality of life, ensures a steady demand for rental properties.
For instance, Newcastle's economy has diversified significantly, with growth in sectors such as digital technology, renewable energy, and healthcare. This diversification reduces economic risk, making the region more resilient to economic downturns and an attractive prospect for long-term investment.
Moreover, infrastructure projects like the development of Newcastle International Airport, improvements to the public transport system, and the expansion of business parks contribute to the region's appeal. These projects enhance connectivity, making it easier for residents to commute and for businesses to operate, further driving demand for housing.
A Missed Opportunity
Colliers’ omission of Newcastle and the North East in their investment report overlooks these critical factors. Investors looking for high yields and affordable entry points should consider the North East as a prime location. The region's economic stability, high rental yields, and ongoing development projects make it a compelling choice for buy-to-let investments.
It is also worth noting that the North East has a strong sense of community and a high quality of life, which are attractive to tenants. The combination of affordable living, cultural richness, and economic opportunities creates a unique environment where people want to live and work, ensuring ongoing demand for rental properties.
Top 10 Areas for Buy-to-Let Investment
Newcastle and the North East represent the top 10 areas for buy-to-let Investment in the UK. With the highest rental yields, affordable property prices, and growing demand, the region offers a lucrative opportunity for investors. Colliers’ failure to include this region in their report is a significant oversight, but savvy investors should not overlook the North East when considering their next investment. The future looks bright for this region, and it should be at the top of any property investor’s list.
By acknowledging and capitalising on the opportunities in Newcastle and the North East, investors can secure high returns and contribute to the continued growth and development of this vibrant region.
Clarice Carr & Co: Your Buy-to-Let Investment Partner
At Clarice Carr & Co, we pride ourselves on staying ahead of market trends to provide our clients with the most lucrative property investment opportunities. Our expert team offers comprehensive advice and tailored strategies to help you navigate the buy-to-let market successfully. Whether you are a seasoned investor or new to the property market, we provide the insights and support you need to maximise your returns. Trust Clarice Carr & Co to guide you to the best area for buy-to-let investment, including the often-overlooked gems like Newcastle and the North East. Let us help you build a robust and profitable property portfolio.
Want to know more? Check out buy-to-let investment on our website or get in touch.
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