All you need to know about North East property investment

House prices in the North East have risen at a rate of over 15% in the last 12 months, and some predict a buy-to-let boom in the North East. The North East has some of the best rental yields in the UK, with five of our top seven areas for yield currently in the area.

With several towns and cities in the area witnessing growth, there has never been a better time to consider North East property investment.

What is the state of the North East property market?

The North of England is currently one of the fastest developing regions in the United Kingdom. Despite inward investment, property prices in the North East have remained 44% lower than average national prices - for now.

As any experienced investor will attest, low property prices in developing areas often make for high rental yields. Our yield hotspot data currently suggests that landlords can enjoy rental yields of up to 9.2% in the North East, making its property market one of the most lucrative - if not the most lucrative - in the country.

The North East typically is defined as Tyne and Wear, County Durham, Teesside and parts of Yorkshire. A recent report by the European Commission suggests that income levels, jobs, productivity and investment are all increasing in the area. The document also suggests that knowledge-based businesses and technology start-ups are benefiting the economy.

Another factor driving property investment opportunities North East is the proliferation of students in the area. Universities in Newcastle, Durham, Sunderland, Middlesbrough and York all mean that there is a high demand for multiple occupancy tenancies, which generally generate higher incomes than single-occupancy properties or properties occupied by couples/families.

House prices in the North East has risen by 21% since April 2020, and look set to continue in this direction. Several towns and cities in the area have been listed among the top ten areas to invest in the UK in 2021, with Washington topping several forecasts. Hartlepool, Newcastle and Sunderland all rank highly, too.

Is Newcastle a good place to buy property?

Newcastle-upon-Tyne and neighbouring Gateshead are some of the best places to invest in the North East. The city is home to some 292,000 people, with around 1.65 million living in the wider Tyne area.

While Newcastle used to have a reputation for an economy built on shipbuilding and mining, its economy has experienced something of a transformation in recent years. Some of the area’s largest employers are in the financial, automotive, transport and public sectors, and the city is also home to an emerging digital creative industry.

This economic boom has meant that Newcastle is now home to many modern business parks - and with so many jobs being created in the area, there is now an abundance of professionals looking to rent a property.

In addition to this, the University of Newcastle-upon-Tyne educates 23,000 students from over one hundred different countries each year, while Northumbria university has over 27,000 students across its two campuses. This large student population has created a demand for properties in areas like Heaton, Jesmond, Shieldfield, Sandyford and Spital Tongues.

The current average house price in Newcastle is just £128,000, in comparison to the UK national average of £254,000. Some reports suggest that property prices in Newcastle might rise by 18% over the next three years - more than London – so Newcastle might well be a North East property investment worth looking at.

Is York a good place to buy property?

Like Newcastle, York is home to two of the UK’s leading universities, which between them educate over 25,000 students each year. This generates a need for multiple-occupancy student housing, as well as a demand for housing among young professionals, as many graduates go on to live and work in the city permanently. A 2016 article by the York Press claimed that the area was the sixth-best for property investment in the UK. With increased investment in the area since then, it’s arguable that York has moved even further up the table in 2021.

While student lets can be lucrative, they’re not suitable for every investor. High tenant turnovers mean maintenance can become something of a chore - but thankfully, York has a lot more to offer than first-class degrees. It’s a city with great transport links, ongoing development, cultural diversity and a bright future. The centre of York is now classed as an Enterprise Zone, and plans for the area include the development of thousands of new homes.

Like other areas in the North East, York still has relatively low property prices despite being an incredibly desirable place to live. It is easily one of the best places to invest in the North East on account of its popularity and affordability.

Property investment opportunities North East: is now a good time to buy?

Now that fears that the coronavirus pandemic and Brexit would have a negative impact on the North East housing market have been proven wrong, the future looks bright for property investors in the area.

As the economy continues to recover, the next few years could be lucrative for buy-to-let landlords, as both house prices and rental yields in the North East continue to rise.

If you’d like to learn more about where to invest in the North East of the UK, why not use PropertyData? With a wealth of features available, you can use the platform to make more informed decisions on when and where to make property purchases, based on reliable, accurate and up-to-date information.

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Transparent data promise

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How do you know the square footage of properties?

We use proprietary technology to read the square footage of properties from agent floorplans. Although we cannot determine the square footage for all properties, we can usually get sufficient coverage. Agents are sometimes known to inflate square footage, and this should be borne in mind as a weakness of this data.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry.

How often is the data updated?

Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2022-03-31, although some sales that took place before this date may still be added in the coming months.

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry, and Energy Performance Certificate (EPC) data provided by Ministry of Housing, Communities & Local Government.

How do you know the square footage of properties?

We match the Land Registry data to EPC data provided by the MCHLG. Due to the fact that not all properties sold have had an EPC and vagaries of addressing in the UK, we are not able to determine the square footage of all properties, but we can usually get sufficient coverage.

How often is the data updated?

The private paid data is updated once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month. The energy performance certificate database is updated monthly.

What time period does the data cover?

You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2022-03-31, although some sales that took place before this date may still be added in the coming months.

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Room let listings on SpareRoom, the UK's biggest room letting website.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from SpareRoom, they are soon removed from this tab.

How is the raw data processed?

Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale.

What is the yield calculation used?

The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The data is updated in near real-time.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from Zoopla, Rightmove or Spareroom, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale. For the SpareRoom data, hypothetical properties consisting of two to six average double rooms with shared bathrooms are used to derived average rent. For all sources, listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What is the yield calculation used?

The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property "price paid" data provided by the Land Registry.

How often is the data updated?

Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

Zoopla Zed-index

What time period does the data cover?

The data covers transactions in the last six years

How is the raw data processed?

No additional processes are applied to this data.

What are the statistics used?

The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

The price paid data shown goes back to January 2015. The listings data is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

What are the calculations used?

Average sales per month are for the last 3 finalised months. Turnover is average sales per month divided by total for sale. Inventory is 100 divided by turnover.

Where does the raw data come from?

Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

How often is the data updated?

The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

What time period does the data cover?

This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

How is the raw data processed?

Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

Where does the raw data come from?

We receive data on the extent and corporate ownership of all land titles in England & Wales from the Land Registry.

How often is the data updated?

The data is updated once per month when released, typically in the first few days of each calendar month.

What time period does the data cover?

This is an ownership snapshot - the data represents ownership as recorded by the Land Registry at the last monthly export.

How is the raw data processed?

No additional processes are applied to this data.

Where does the raw data come from?

We source different expert forecasts Savills, Knight Frank, OBR

How often is the data updated?

The data is updated annually when new forecasts are released, typically towards the beginning of the year.

How is the raw data processed?

We calculate a consensus forecast using a simple mean average.