If you’re considering venturing into the UK property market, our property advisors at Yield Investing have done their research and have some exciting insights to share. We’re going to explore the North East, a region that’s been quietly gaining momentum in recent years. The North East of England is an area with untapped potential and is often overlooked for properties in London and areas of the South. Whether you’re a seasoned property investor or just starting out, let’s take a look at the promising opportunities waiting for you in the North East.
Why Invest in North East Property?
So, why should you set your sights on the North East when there are so many other options? In recent years, London and the South East have long held the spotlight in the UK property market. But with soaring prices, they’ve become out of reach for many investors. In contrast, the North East offers a refreshing balance between affordability and potential returns on investment. And you won’t have to break the bank to get your foot in the door. For example, according to the August 2023 Zoopla house price index averages, property prices in London are £542,400, and in Newcastle, they are £152,100.
The North East also offers a unique property landscape compared to other regions in the UK. This diversity allows you to spread your investments and mitigate risk, all while enjoying those higher yields we know you’re after.
Now that you understand why the North East is a hotspot for property investment let’s look into the key cities that make this part of the UK a goldmine for real estate opportunities.
Newcastle upon Tyne
Newcastle upon Tyne is the crown jewel of the North East and is known as one of the happiest cities in the UK. Newcastle has a booming cultural scene, and thanks to its convenient transport links and developing economy, it is becoming an attractive place to live.
Thriving Economy
Newcastle is known for its diverse and thriving economy. Sectors like finance, healthcare, and digital technology are growing there, which means there’s a steady influx of professionals seeking rentals, ensuring a healthy demand for investment properties.
Education Hub
With two major universities, Newcastle University and Northumbria University, the city attracts a large student population. And let’s not forget that Newcastle is a member of the prestigious Russell Group, which is a part of the UK’s top public research universities. Translation? A constant stream of students looking for accommodation.
Cultural Vibrancy
You might think property investment is all about numbers, but the cultural scene matters, too. Newcastle is brimming with arts and culture, from theatres to music venues and galleries. This cultural vibrancy adds to the city’s overall attractiveness for property investment in the North East, drawing in a wide range of residents and tourists.
Excellent Connectivity
Newcastle’s transportation infrastructure is some of the best in the UK. With an international airport and excellent rail links, the city is a desirable place to live and work, further driving the demand for rental properties.
Regeneration Projects
The Quayside area in Newcastle has seen substantial regeneration in the last two decades, including the development of new residential buildings, office spaces, and leisure facilities. Science Central is also another major development project in Newcastle focused on innovation and sustainability. It includes office spaces, research facilities, and residential properties, fostering economic growth and environmental sustainability. These developments have not only improved the quality of life for residents but have also increased property values in the area. This is great for you as an investor, as it will help you build equity while generating a monthly income.
Middlesbrough
Middlesbrough is a bustling town located in the heart of the Tees Valley, right on the banks of the River Tees. It’s a place where the old meets the new, and here’s why it deserves your attention:
Student Hub
Middlesbrough is home to Teesside University, attracting a significant number of students every year. Educational facilities here are leading the way, with Teesside University and Middlesbrough College investing over £300 million into future developments. This is a strong indication of the town’s commitment to strengthening its relationship with its students.
Regeneration Projects
Middlesbrough has undergone a remarkable transformation in recent years thanks to significant regeneration efforts.
Middlehaven is an ongoing regeneration project that has transformed former industrial land into a modern residential and commercial area, contributing to the town’s revitalisation.
The Boho Zone is an area in the heart of Middlesbrough that has been a focal point for creative and digital businesses. It’s part of the town’s efforts to diversify its economy and attract tech startups and creative professionals.
These projects have reinvented the town centre, making it a more attractive place to live and work. As an investor, you can ride the wave of increased property values resulting from these improvements.
Affordable Properties
Compared to property prices in the South of England, Middlesbrough offers affordable real estate opportunities. This affordability means you can start or expand your property portfolio without breaking the bank.
Durham
Durham was voted one of the best places to invest in the UK in 2023. It’s a city full of history, home to one of the UK’s most prestigious universities and is a unique market for property investors. Here’s what you need to know:
Historic Charm
Durham is known for its stunning architecture, including the iconic Durham Cathedral and Castle. The city’s historic charm attracts tourists and residents alike, creating demand for both short-term and long-term rental properties.
Durham University
As one of the UK’s top universities, Durham University draws students from around the world. This consistent influx of students ensures a stable demand for student housing.
Commuter-Friendly
Durham’s proximity to Newcastle and excellent transport links make it a desirable place to live for those who work in larger cities but prefer a quieter lifestyle. There are a variety of commuting options, making it an attractive location for professionals.
Heritage Regeneration
The city has had several heritage regeneration projects that have preserved its historic character while improving living standards and property values. Durham Riverside Renewal is a project that has improved the Riverside area in Durham. It includes new housing developments, commercial spaces, and improved public spaces, enhancing the city’s appeal. So, you get the best of both worlds—historic charm and modern comforts.
Stockton on Tees
Now, let’s turn our attention to Stockton on Tees, a hidden gem in the North East property market, with its growing job market and strong transport links. The area is also known for its quality schools and green spaces. These factors make it a smart choice for property investment.
Riverside Living
Stockton on Tees’ proximity to the River Tees provides an excellent opportunity for riverside living. The Northshore regeneration project is focused on transforming the riverside area. It includes residential properties, commercial spaces, and leisure facilities, creating a vibrant waterfront community. Waterfront properties often command higher rental incomes and can appreciate in value over time, making for great investment opportunities.
Growing Business Hub
Stockton on Tees is emerging as a business hub and is appealing to professionals in various industries. Similar to Middlesbrough, Stockton is also expanding its Boho Zone, bringing creative and digital businesses to the area. Investing in properties that cater to this demographic can yield substantial ROI on investment properties. After all, where there are professionals, there’s a demand for quality rental housing.
Commuter-Friendly
The town’s excellent transport links, including easy access to major cities like Durham and Newcastle, make it a desirable location for commuters. Investors should consider properties that cater to this market segment for a reliable buy-to-let income stream.
Green Spaces
Stockton on Tees is made up of several parks and green spaces, making it an attractive place to live for families and those who love the outdoors. Properties in areas with easy access to these amenities can be in high demand. This is great for you as an investor, as properties in high-demand areas mean a larger ROI is more likely.
Hartlepool
Our property investment journey in the North East wouldn’t be complete without exploring Hartlepool, a coastal gem with unique potential. The town offers affordable housing prices and high rental demand. With a growing job market and good schools, it’s a place where property value is likely to go up in the near future.
Coastal Living
Hartlepool’s coastal location offers a distinctive lifestyle. The Hartlepool Waterfront development project aims to rejuvenate the town’s waterfront area. It includes plans for new residential properties, retail spaces, and improved public amenities. Investing in properties with sea views or proximity to the beach can be a lucrative choice. These features often command higher rental income because of how sought-after they are.
Strong Maritime Industry
Hartlepool has a rich history in the maritime industry, dating back to its days as a fishing port. Over time, it evolved into a hub for shipbuilding and now also focuses on offshore energy projects. The town’s maritime industry continues to thrive, attracting professionals and skilled workers. This creates a strong demand for rental properties, especially in areas close to industrial hubs. When industries flourish, so does the rental market.
Affordable Investment
Like many parts of the North East, Hartlepool offers low property prices. This means you can enter the market with relative ease and lower upfront costs. These affordable costs in a regenerated area mean that property prices should continue to increase, as will rental demand.
North East Property Investments: What’s next?
The North East of England is a hidden treasure for property investors, offering affordability, strong yields, and diverse opportunities. Our developments in Middlesbrough, Durham, Stockton on Tees, and Hartlepool each have their unique appeal, making it possible to tailor your investment strategy to your preferences.
At Yield Investing, we offer overseas property investors a fully hands-off solution to investing in properties in the UK. Unlike a standard buy-to-let property, investors in social housing in the UK don’t have to worry about finding tenants, collecting rent, or dealing with any maintenance issues. This makes for a more passive income stream while still earning a high return on your investment.
Our team of experts has a deep knowledge of the North East property market, and with our guidance and a diverse portfolio of properties in prime locations, you can look forward to a secure and profitable investment portfolio. Contact our investment advisors today to learn more about our developments and investment strategies.
