On average, the North East economy grew at around 1.2% throughout the duration of 2017. This figure is slightly down on the UK national average which was in the region of 1.7%. Although the North East has lagged behind a little as the UK economy grows, the prediction for 2018 is much more positive at around 1.9%-2.2%.
In the North East there are now lots of hubs for exciting dynamic activity in the pipeline for 2018. This is set to take place across the region and in particular, Newcastle. There are many start-up and entrepreneurial businesses setting up and investing in the North East. Thousands of new jobs will be created in ten major developments in Tyne & Wear, Northumberland and also Durham. These will change the face of the North East boosting its economy in the next twelve months. Developments include:-
- Vaux site – this particular development project is at last coming to fruition. Work on the former brewery site in Sunderland city centre is planned to include offices, shops, restaurants, cafes, flats and a hotel.
- White Hart Yard – Newcastle’s thriving nightlife will be further boosted by this scheme from the leisure firm Crafted Projects. The company behind Central Oven, Pleased to Meet You and Shaker aims to create 150 new jobs as it turns this collection of little known historical buildings into a dynamic range of bars and restaurants.
- Gateshead Quays urban garden – a temporary installation of shipping containers located on the Gateshead Quays has been planned as part of the Great Exhibition of the North. Garden designer Diarmuid Gavin, aims to create a beautiful garden in the heart of Tyneside with the structure on Hillside Quay containing shops, cafes and even a performance space.
- Science Central – the Newcastle Science Park is beginning to take shape with a number of buildings already completed by Newcastle University. Planning permission has also been granted for a 12-storey office block creating approximately 900 jobs.
New pubs and bars are also set to open in Durham as well as coffee shops and restaurants.
Good news for landlords
With higher than average growth expected in the North East throughout 2018-2020, landlords are looking forward to enjoying bigger profits. University cities such as Newcastle are targeted now by many landlords as one of the UK’s top buy-to-let hotspots. Landlords are also investing in the area due to its high buy-to-let yields and major development projects which will attract more professionals seeking to rent.
North East business expansion
Many businesses in Newcastle and the North-East region saw encouraging expansion in 2017, and 2018 is set to be even more successful for businesses in the area. With more successful tenders being won in the North East, businesses using bid writing companies are already seeing the benefits this can have on their business.