Newcastle Upon Tyne Property Investment Guide

Newcastle's Growing Population

If you're considering investing in property, Newcastle-upon-Tyne could be a wise choice. This city is experiencing steady population growth, with experts predicting that the population could increase by over 12% by 2030. This trend is driven by both international migration and young professionals flocking to the city for work opportunities.

Not only is Newcastle's population increasing, but the city's economy is also on the upswing. The area boasts a diverse mix of industries, from traditional manufacturing to tech start-ups. In particular, the city's digital sector has experienced rapid growth in recent years, and it shows no signs of slowing down.

So, what does this mean for property investors? Investing in Newcastle could be a smart move, as the growing population and economy indicate that there will be continued demand for housing in the area. As demand increases, so do property prices, meaning that those who invest in property now could stand to see significant returns in the years to come.

Economic Outlook And Is Investing in Property within Newcastle a Good Choice?

When it comes to property investment in the UK, there are few cities as appealing as Newcastle upon Tyne. This city is one of the fastest-growing in the country, with a booming economy that is attracting more people than ever before.

As a result, property prices in Newcastle are on the rise, making it an attractive prospect for anyone looking to invest in real estate. But is this really a good choice or time for investors?

The short answer is certainly but let’s dig in more. Several factors make Newcastle a great location for property investment, not least of which is the city's growing population and strong economic outlook.

With a population of around 300,000, Newcastle is one of the largest cities in the north of England. And with its excellent transport links, vibrant cultural scene, and excellent universities, it is an attractive location for people of all ages and backgrounds.

This growing population is creating a high demand for property, which is driving up prices and making buy-to-let deals particularly appealing to investors.

But it's not just the demand for property that makes Newcastle such an attractive location for investment. The city's economic outlook is also very promising, with a thriving tech industry and several major regeneration projects currently underway.

These regeneration projects include the redevelopment of Newcastle's famous Quayside, as well as plans to create new commercial and residential spaces across the city. All of these developments are expected to drive further growth in the local property market, making now a great time to invest.

So if you're looking for the best property deals in the UK, and want to invest in a city with a bright future, Newcastle should definitely be on your list.

Upcoming Regeneration in Newcastle - What Does This Mean for Property Investors?

As Newcastle upon Tyne continues to grow and prosper, there are several exciting regeneration projects underway that are sure to have a positive impact on the city's property market.

One of the most significant projects is the Stephenson Quarter, which will transform a prime piece of real estate into a vibrant mixed-use development. This 10-acre site will feature new office space, retail units, hotels, and residential properties next to the Central Station. The development is set to create more than 5,000 new jobs and is sure to have a significant impact on the local property market.

Another major project is the redevelopment of the former Odeon cinema site in the heart of the city centre. The site is set to be transformed into a new leisure destination, with restaurants, bars, and a state-of-the-art cinema complex. The development will breathe new life into the city centre and is sure to attract more visitors and new residents to the area.

These regeneration projects are just a few examples of the exciting developments taking place in Newcastle. As these projects come to fruition, the demand for property in the city is likely to increase, driving up property prices and creating new opportunities for investors.

Property investors who get in early on these regeneration projects can reap the benefits of increased demand and rising property prices. Buy-to-let properties in particular are an attractive option for investors, as they offer a steady stream of rental income and the potential for long-term capital appreciation.

If you're considering investing in property in Newcastle, it's essential to keep a close eye on the upcoming regeneration projects. By staying up-to-date on these developments, you can identify new opportunities and make informed investment decisions.

Key Projects currently in the pipeline:

• In collaboration with Newcastle City Council and Legal & General, Newcastle Helix has undertaken an extensive urban regeneration project spanning multiple years with an overall investment of £350 million.

• It is hoped that the building of a £330m arena on the Gateshead Quayside will commence soon. This colossal new facility will encompass a 12,500-seat arena as well as an international conference center and will be built on a desirable plot of riverfront land between the Sage Gateshead music hall and the Baltic Center for Contemporary Art.

Property Prices in Newcastle - Are They Growing?

Property prices in Newcastle upon Tyne have been steadily growing over the past few years, making it an attractive destination for property investors. According to Zoopla, the average property price in Newcastle is currently £206,835, which represents an increase of 2.14% compared to last year.

However, it is worth noting that different areas within Newcastle have experienced varying levels of price growth. For instance, the areas of Jesmond and Gosforth have seen a significant rise in property prices due to their affluent status and proximity to the city centre. Meanwhile, the more deprived areas in the east end of the city have experienced a slower rate of growth.

Despite this, property prices in Newcastle are expected to continue rising over the coming years, particularly as the city undergoes a period of regeneration and expansion. As more people choose to live and work in the area, the demand for housing will increase, and property prices are likely to follow suit.

One of the key factors driving this growth is the city's thriving economy. Newcastle is home to several large companies and institutions, including Newcastle University, which has a student population of over 25,000. Additionally, the city is experiencing an increase in job opportunities in sectors such as tech, healthcare, and professional services.

All of these factors make Newcastle a promising destination for property investors who are looking to secure long-term capital growth. While there may be fluctuations in the property market in the short term, the overall outlook for Newcastle's property prices is positive.

Expected Property Rental Yields In Newcastle-upon-Tyne

In Newcastle, the average rental yield is 8%, with some areas boasting a yield of up to 9.5%. The NE6 postcode stands out as having a particularly high yield of 9.48%. Property XYZ states that, on a long-term let, the average yield in Newcastle is 6.8%. In terms of growth, data from HM Land Registry shows that the price of rental properties in Newcastle has grown by 11.1% over the last year. Meanwhile, the average monthly rent achieved in the city is £1,003 - an increase of 6.6%. Finally, The Royal Institute of Chartered Surveyors forecasts that rents will increase by more than 25% in the coming years, making rental investments an attractive prospect now and for the future given the level of high demand.

Student Sector -

Attracting more than 60,000 students from the UK and overseas, the two main Universities of Newcastle are nestled in the heart of the city centre and are conveniently located in proximity to one another. Both Newcastle University and Northumbria University feature in the world university rankings. Every year, a steady and reliable demand for rental property is created by the student market and a whopping 65% of graduates elect to remain in Newcastle, further solidifying the young professional tenant base. With an abundant demand and limited supply, shared accommodation, self-contained studios, and one-bedroom apartments are highly sought-after in the city. Property investors can look forward to yearly returns of 8% and higher, with studio prices within this area starting at £65,000.

Serviced Accommodation sector -

The yearly average nightly rate in Newcastle is £85 but can peak at around £140 per night depending on seasons and local events. Every year, Newcastle is visited by over a quarter of a million people, out of which eighty-four thousand are here for leisure. When it comes to why they're in town, visiting family and friends is the primary reason, closely followed by holidaying and work relocation. This type of letting sees high demand from the booming business sector, where thousands of individuals moving for a short period of time need accommodation. One-to-two-bedroom apartments provide a home-like atmosphere and can yield a 10%+ return each year. Potential clients include local businesses that are suited to this type of model are,

Should you invest in Newcastle?

Investing in Newcastle is highly recommended. The local population has seen growth, with an influx of students coming to the city due to its reputation for being dynamic and exciting. This is driving up rental demand, making Newcastle an ideal place to invest. Newcastle's two major universities, Newcastle University and Northumbria University, bring in thousands of students every year. These students require accommodation, and this presents a fantastic opportunity for buy-to-let investors. Properties close to university campuses tend to be in high demand, with a large pool of potential tenants.

Apart from the student market, Newcastle also has a strong professional rental market. This is because of the city's economy, which is built around industries such as manufacturing, engineering, and financial services. Many professionals who work in these sectors often prefer to rent properties close to the city center, which offers easy access to work and leisure activities.

When investing in a buy-to-let property in Newcastle, it is essential to consider the location of the property. Areas close to Newcastle's city center, such as Jesmond, Gosforth, and Heaton, are popular with students and young professionals alike. These areas offer an attractive mix of good transport links, amenities, and nightlife.

Newcastle is a great place for investing in property; all signs point to increases in both property prices and rental yields in the different markets, which make it especially attractive to first-time buyers given the lower costs of entry, thus helping to keep monthly costs manageable.

In addition to the above, it is crucial to do your research before investing in a buy-to-let property in Newcastle. Take the time to research the rental market in the area, speak to local estate agents, and compare rental prices in different parts of the city. It is also important to factor in maintenance costs, mortgage payments, and other expenses to determine if the investment is financially viable which you can access on this site.