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A happy hunting ground for property investors is something that might be said of the north of England, generally. But there’s one place that is even better than the north …. and that’s the North East. That’s all thanks to its unique mix of low property prices, high rental yields and good prospects for rising property prices in future. Here’s our guide to the best places to invest in property in the towns and cities of North East England.
Why Invest in the North East?
Investors looking for bargain property investments will find that the North East can’t be beaten for value. According to the current UK House Price Index from HM Land Registry, the North East of England is the cheapest place for property, by far. The average price for a house here, new builds excluded, is just £125,650… compared to the average house price across England of £251,233.
Low property prices mean strong yields for investors too. Statistics suggest it is not too difficult to find annual returns of 8% to 9% in the North East – read on to find out where.
The North East region comprises Tyne and Wear, Teesside, County Durham and Northumberland. Although it is England’s smallest region it still has a population of around 2.6 million, so there is a very large and diverse property market here.
And here’s some good news for property investors looking for up and coming areas: The North East economy is sometimes thought of as being behind much of the country. But this report says that, although there are still some issues, the North East is closing the economic gap on the rest of the country.
And this report from the European Commission says that productivity, jobs, income and investment have increased in the North East, and the economy is becoming more mixed with an increase in knowledge-based businesses. Really good news is that it reveals technology start-up figures are the highest in the country compared to the region’s size, and skills in the North East are improving faster than the national average.
The North East is a popular student location offering student property investment opportunities. Although Newcastle has the largest student population investors might look at student accommodation investments in Sunderland, Durham and Middlesbrough where there are also universities.
Property Values in the North East
Newcastle in Tyneside is one of the cheapest major cities for property in England according to Hometrack. They say that the current average price in Newcastle is £129,700.
Although the official average property price in the North East is just under £126,000 it is not difficult to find property investments much cheaper than this. This report says it is possible to buy houses and flats in parts of the region from as little as £17,000!
This local press report points out that while property prices in some parts of the North East are rising, in others they are actually falling – it recommends now might be a good time for North East property hunters to buy.
Rental Demand in the North East
Although it’s cheap to buy a home here, there’s still a strong demand for property to rent. Local agents Bricks & Mortar, say ‘the North East boasts an array of hidden gems within the UK’s buy to let market’ and that it is ‘fuelled by affordable housing and growing demand for rental properties.’
This report from The Telegraph says North East England offers some of the best prospects for buy to let investors. They say that Hartlepool and County Durham are amongst some of the places giving investors the best return on a £25,000 investment.