In 1998, the iconic Angel of the North sculpture was completed. Designed by Antony Gormley to create ‘a sense of embrace’ the steel angel reaches 20 metres tall and spans 54 metres across. According to Gormley, the significance of the angel was to signify that beneath the site of construction coal miners worked for over 200 years and secondly as a symbolic emblem to mark the transition from an industrial age to an information age. In 2016 the imposing figure was decreed an official ‘English Icon’ status by the government.
Furthermore, Newcastle Central Station was the first covered train station in the world. Opened in 1850 by Queen Victoria it stands today as one of only six Grade 1 listed railway stations in the UK.
Residential Property in the Private Rented Sector of Newcastle Property Investment
To develop and deliver a Joint Investment Plan in partnership with the Homes and Communities Agency (HCA), using HCA resources and Newcastle’s £25 million Future Homes Fund, the plan to build 15,000 homes within Newcastle’s urban area, will improve the function of the housing market in Newcastle and provide a hotbed for Newcastle buy to let.
In line with the population rising by 12%, the number of households in Newcastle is projected to rise from 122,424 in 2015 to 137,471 by 2030. Figures from Gateshead & Newcastle upon Tyne House Market Assessment 2017 suggested that more than 1,000 new homes per year are needed in Newcastle over the forthcoming 15 years. Initially, this seemed like a challenge, but one Newcastle must face with open arms if it is to meet its growing population by 2030.
Due to increasing demands, property prices in Newcastle have soared rapidly. Over the past 20 years there has been a price growth of 224.6% and in the last five years by 20.49%. This distinctive increase has led to a notable surge in demand over the past five years, teamed with the projections of future needs, the relatively low entry points present prosperous opportunities for investors looking to secure residential developments through Newcastle buy to let schemes between now and 2030.
Across the North East, home ownership levels have declined over recent years and household income has been concluded as one of the fundamental determinants in the ability of households to access home ownership or the private rented sector. Figures from the Resolution Foundation highlight that 54.9% of people in the North East owned their own home in Q4 of 2005. By 2017, that figure had plummeted to 48.3%. Over the same period, private renting had nearly doubled, experiencing a rise from 5.9% to a staggering 11%. Ultimately, this has produced an incessant demand for the types of housing required within Newcastle property, strengthening the opportunities and prospects for investors to capitalise on the flourishing Newcastle buy to let scene.
Rental Yields and House Prices
The North East boasts a multitude of hidden gems within the property market, particularly within Newcastle buy to let. Fuelled by affordable housing and a heavy demand for rental properties, prospective landlords are now, more than ever, considering Newcastle property investment when looking to embark on a new property venture.
Although capital appreciation across Newcastle buy to let has started to decelerate, this has kept housing affordable following steady increases throughout the previous five years, creating an unmissable opportunity to build up their portfolio and diversify rental income from Newcastle property investment.
Property prices act as a catalyst for Newcastle investment that is tempting people away from the bright lights of the capital to seek lower prices. Property prices in Newcastle are around 70% below the national average, witnessing a 9% increase over the last five years due to ongoing regeneration, housebuilding and the expansion of university facilities, proving an exciting time for discerning property investors to consider Newcastle buy to let.
Newcastle offers 68 postcodes with a diverse range of different investment opportunities. Therefore, it is important to perform due diligence before committing to any Newcastle property investment. Researching the market, understanding the area and considering what type of investment you can expect is important, whilst considering the maximum returns and growth the investment is predicate to generate.
Research from Totally Money states that university cities have some of the highest rental yields on offer, with Newcastle property taking the position as one of the top performers. Due to a strong influx of students arriving each year, landlords have a plethora of students to choose from which ultimately reduces the likelihood of void periods. NE6 ranks sixth for Newcastle buy to let with an average yield of 9.48%. Situated only a couple of miles away from Newcastle University it secures itself as a viable buy to let hotspot to invest in Newcastle for student accommodation.
With healthy student numbers each year, investors are drawn to capitalising on properties for sale in Newcastle for assured rental yields and the potential for full occupancy. Students are often seeking higher quality living meaning that rent figures can be significantly more during term time.
According to the Royal Institute of Chartered Surveyors, rents will increase by more than 25% over the next couple of years, which makes owning rental property an appealing prospect in terms of the potential returns one can obtain.
Newcastle is a city with a rich history and a bright future both for its residents and those looking to profit by investing in its future. The iconic industrial city has witnessed its ambition and inventions influence multiple pockets of the globe. No longer dependant on the thundering roar of the locomotive engine, the traditional history has transformed its industrial past into a top class digital future allowing the city to stand proudly at the forefront of modernisation once more.