As we move further into the second half of 2024, the property market in the North East of England continues to demonstrate resilience and potential for growth. The region, traditionally known for its affordability, is now gaining recognition for its strong performance in both property prices and the rental market, making it an increasingly attractive area for residential property investment.
Current Market Overview
The North East remains the most affordable region in England and Wales, with an average property price of approximately £177,000. However, the region is experiencing varied price levels. According to the latest figures from Fine & Country, Northumberland leads the way with an average property price of £221,000, with Tyne and Wear at £192,000, and Durham at around £148,000. These figures underscore the North East’s broad appeal, catering to different buyer segments from first-time buyers to seasoned investors.
While the annual growth rate for property prices in the North East has been modest at around 1.1%, this steady increase reflects the region's resilience in a challenging economic environment. The affordability of the region continues to attract buyers who are priced out of more expensive markets in the South East and London. This trend is further supported by the recent cut in the Bank of England’s base interest rate, which has positively influenced buyer sentiment and market activity. The number of sales agreed in the North East has seen a notable rise, up by 13% in the first quarter of 2024 compared to the same period in 2023, indicating robust demand.
Exceptional Growth in the Rental Market
While property prices have shown steady growth, the rental market in the North East is making headlines with its extraordinary performance. According to recent data from Savills, average rents in the region have surged by 9.5% over the past year, the highest increase recorded in the UK. This is a significant development for buy-to-let investors, who are seeing their investments yield higher returns than in other parts of the country.
This remarkable rental growth can be attributed to several factors. The North East’s affordability not only attracts buyers but also a growing number of renters, particularly young professionals and students drawn to the region’s vibrant cities like Newcastle and Sunderland. The combination of rising demand and relatively low property prices has created a perfect storm for rental yields, making the North East a hot spot for rental investments in 2024.
Investment Opportunities and Future Prospects
The North East property market is currently offering unique opportunities for investors, particularly those interested in the buy-to-let sector. The significant 9.5% increase in rental income, combined with the region’s low property prices, means investors can achieve attractive rental yields while benefiting from potential capital appreciation over time.
Looking ahead, the North East is expected to maintain its upward trajectory throughout 2024. Property prices are forecast to rise modestly by around 2-3% by the end of the year, driven by increasing demand and ongoing investments in regional infrastructure. Cities like Newcastle and Sunderland are particularly well-positioned for growth, with new developments and urban regeneration projects enhancing their appeal to both domestic and international buyers.
For investors, the North East represents a compelling proposition. The region’s combination of affordability, strong rental growth, and potential for future price increases makes it one of the most promising areas for property investment in the UK. As the market continues to evolve, staying informed about the latest developments will be crucial for those looking to maximise their returns in this dynamic region.
Summary: The North East property Market
The North East of England is not just a region of affordability but one of opportunity. With property prices showing steady growth and the rental market delivering exceptional returns, 2024 is shaping up to be a pivotal year for the North East property market. Whether you are a first-time buyer, a seasoned investor, or a buy-to-let landlord, the North East offers a range of opportunities that are well worth exploring.
Want to know more? Check out our website or get in touch.
Commentaires