All investors are looking for low property prices, as well as strong rental yields. The statistics show that you can enjoy both of these elements in the North East of England. But, since Property Investment in the North East can be spread over several counties, are they all the same or are there some that are better than others? Indeed, there are going to be some hotspots for investors that you are going to want to pay attention to.

Property investment in the North East | Why should you invest?

If you have never considered the North East before, now is a good time to start. According to the HM Land Registry’s UK House Price Index, this is the cheapest location for buying property. The prices were well below the average house prices. In the North East, you can enjoy an average house price of £125,650. This is compared to £251,233 as the average price in England.

Of course, it is not just low property prices you are going to be able to enjoy here. It also means strong yields. This can include 8 to 9 percent when it comes to annual returns. This is despite it being one of the smallest regions in England.

But, do not let the size of the North East fool you. It still made up from places like Tyne and Wear to Northumberland. Indeed, there is a population of around 2.6 million. In particular, it is good to hear that the economic gap is closing between the North East and the country in general. Compared to its size, the number of technology start-ups is impressive and it is in fact, the highest in the UK. This is an exciting location to be as skills are improving here too, as well as at a quicker rate than the national average.

Students are also flocking to the North East when it comes to university. In particular, Newcastle sees a lot of students coming to the city every year, as well as Durham and Middlesborough.

Property Investment in the North East | What Are the Property Values You Can Expect?

If you are looking for one of the cheapest cities to invest in property, then you can look no further than Newcastle. This Tyneside city has a lot to offer and the average price you can expect is £129,700.

Overall, you can expect some very affordable prices when it comes to properties in the North East. Indeed, these are going to be a lot lower than other places around the country. If you do your research, you can find properties under the average price in the area. Something to realise is that in some areas, the price of property is increasing. In others, it is falling. Therefore, if you are looking to invest, now may be the ideal time to do so

Is there a Rental Demand in the North East?

The quick and simple answer to this question is yes. A lot of people are looking to rent in the area despite the cheaper property prices. This is good news for investors and there are buy-to-let opportunities available. There are some reports that say these buy-to-let opportunities are some of the best in the country. In particular, key hotspots include County Durham and Hartlepool.

The Towns to Pay Attention to

Do you want to know further details on the towns in the North East and what this investment can mean to you? Let’s take a closer look at some key places that you want to play attention to.

Bishop Auckland

First on the list is Bishop Auckland. This is a market town in County Durham, which used to be a mining area. As an investor, you are going to experience low property prices here, which includes some of the most affordable in the whole of the North East. The average house is around £105,444 and if you look at the DL14 nearby, there are yields of about five percent.

Durham

Next, you have the city of Durham. This is a location with a lot of history and it attracts tourists due to sights such as Durham Castle and Durham Cathedral. We are talking about around 19 million people visiting each year, which opens up interesting avenues when it comes to holiday lets. Another good thing for investors to know is that Durham has a student population too. The average house price you will find here is £105,444. There are four per cent yields in DH1, while you can find higher yields outside of the city. This includes 6 per cent yields in DH6 and DH9.

Gateshead

On one side of the River Tyne, you have Newcastle. On the other, you will find Gateshead. This is a town that is well-known for being home to the Angel of the North, as well as the Baltic Centre for Contemporary Art. For investors, it is an ideal town since the average property prices are typically lower than what you will find in Newcastle. The average house price is £133,838. Indeed, you can enjoy a 7 per cent yield in NE8 postcodes.

Hartlepool

If you are looking for cheap property, another place you want to start looking is Hartlepool. This town has a population of 92,000 and it attracts tourists during the year thanks to the National Museum of the Royal Navy, as well as Hartlepool Marina. You will find that the average house price is £110,712, while you can enjoy a yield of up to five percent in certain postcodes, such as TS25 and TS27.

Middlesbrough

Another place you may want to consider is Middlesbrough. While it is important to recognise that this town has experienced economic decline over the years. However, regeneration is very much on the cards for Middlesbrough. In particular, new businesses are coming to the town thanks to the Tees Valley Enterprise Zone. What’s more, South Tees Development Corporation is said to bring around 20,000 new jobs to the area in the next 20 years. You are going to find some cheap property in Middlesbrough and this also brings yields of more than nine percent in TS1, as well as more than seven percent in TS3. Do not forget that Teesside University is now bringing 19,000 students to the area too.

Newcastle Upon Tyne

When a lot of investors consider the North East, they think about Newcastle. Often, it is referred to as the ‘capital’ of this area and it has a population of 292,200. If you consider the Tyne and Wear area altogether, this boasts around 1.65 million people. There are a lot of businesses that call Newcastle its home, which attracts a range of professionals. This includes those in the financial and public sector, as well as the transport industry. There is growth when it comes to the creative and digital fields. Let’s not forget that there are two major universities here; The University of Newcastle upon Tyne and Northumbria University. Together, they bring in 50,000 students to the area. Thus, there are a lot of professionals and students looking for accommodation in Newcastle. You can even enjoy yields of over eight percent in NE1 and NE6 postcodes.

Stockton-on-Tees

Stockton-on-Tees is a good town that offers properties on both ends of the spectrum when it comes to price. The population is 85,000 and the area includes smaller towns. You are going to find some affordable property here with a yield of up to five percent in TS20 and TS21. Then, if you are looking for investments that are good for young professionals, as well as families, there are areas like Eaglescliffe and Yarm that have a higher price tag.

Sunderland

As an investor, you may have already considered Sunderland and are looking for more details. The city is home to some huge companies, such as Nissan Motor Manufacturing, as well as offering easy access to Newcastle. This makes it an attractive place to live for commuters, plus professionals that work at one of the major companies. The average house price is £116,051. You can look forward for years of five to fix percent in SR1 to SR6. The population of Sunderland is 277,400.

Washington

Last, but not least, there is Washington. This is a town with around 67,000 residents and it is located in the city of Sunderland. Since it is on the A1(M) motorway, you can access Newcastle and other areas of Sunderland easily. Therefore, young professionals and those looking to commute will find Washington attractive. Indeed, investors are going to benefit and the postcodes NE37 and NE38 are said to offer a reliable 5 percent yield. The average house price is estimated to be £116,051.