For many buy-to-let landlords, their focus is already on where to invest in property hotspots for 2018. As inflated house prices across London and the south west get even higher, savvy investors are increasingly looking north as an alternative. The first fruits of the northern powerhouse in terms of infrastructure improvements and project investments are now beginning to flourish especially in major cities like Newcastle.
Newcastle has plenty of charm and character. Linked by the Metro system it’s the epicentre of surrounding areas like Gateshead, Sunderland, North and South Shields. Early analysis suggests that the North East of England and Newcastle in particular is one of the UK’s most affordable housing regions. With house prices rising by just 0.3% in 2017, the city offers buy-to-let investors a golden opportunity for a decent return on their capital outlay.
Newcastle’s buy-to-let market, fuelled by affordable housing and an increased demand for rental properties, provides prospective landlords with the ideal location when looking to increase or start a property venture. When it comes to impressive rental yields, look out for specific areas and postcodes in Newcastle:-
- The NE1 postcode (Newcastle city centre) is notably a buy-to-let hotspot. The area offers inexpensive house prices especially for a city centre, on average £174,450. This can provide an impressive rental yield of around 5%-6%.
- The city’s NE6 postcode, Byker and Heaton, are even less expensive, producing some of the biggest profits for landlords in the UK. With such close proximity to the city centre, reliable transport links and good nearby amenities, the area attracts a large influx of tenants, students as well as young professionals. Expect a yield of around 8%-10%.
The Quayside remains one of Newcastle’s trendiest addresses while Jesmond is home to many luxury properties. For affordable suburban semis, Gosforth and High Heaton are a good choice and a firm favourite with long-term tenants.
2018 is a new dawn for Newcastle with the city centre set to be transformed in the coming year. Several projects and building works have been underway for months and are now nearing completion. There are substantial property and commercial developments happening across the city such as:-
- The regeneration of Northumberland Street and Blackett Street
- Bigg Market revamp
- City centre garden project
- Newcastle Turkish Baths
2018 is going to be a pivotal year for Newcastle, a city which has continued to attract investment and development, creating jobs within a wide range of sectors. Needless to say, many professionals attracted to Newcastle searching for work will be looking for affordable buy-to-lets. Great news for landlords.
If you’re a landlord interested in property investment in Newcastle, you should get In touch with a reputable letting agent in the area. They will be able to provide assistance on any questions you may have, and will also be able to help you take your first steps to becoming a buy-to-let landlord.