24/07/2017
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A property market guide for Landlords and Investors in the North East

24/07/2017
 
A property market guide for Landlords and Investors in the North East

Investing in property is a sensible move for many people these days, particularly with the demand for rental accommodation being what it is. However, it is important that landlords and investors study their options first before making a commitment. The expected yield of a property/area is something that should be at the heart of the decision making process for all landlords and investors.

 

There are many different areas of the North East that are worth considering for an investment in the buy to let market, and the following areas indicate that there is diversity in the market.

 

The North East provides investment options

The NE1 postcode area covers the city centre of Newcastle. The average value of property in the NE1 postcode area is £173,300 with the average price paid for property, over the past 6 months, stands at £154,125. NE1 offers the following expected rental yields:

  • 1 bed in NE1: 6.24% Rental Yield
  • 2 bed in NE1: 5.92% Rental Yield
  • 3 bed in NE1: 4.99% Rental Yield
  • 4 bed in NE1: 6.58% Rental Yield
  • 5 bed in NE1: 4.89% Rental Yield

The NE3 postcode area covers Gosforth, Fawdon, Kingston Park and Great Park. The average value of property in the NE3 postcode area is £272,945 with the average price paid for property, over the past 6 months, stands at £237,642. The NE3 postcode area offers the following expected rental yields:

  • 1 bed in NE3: 5.84% Rental Yield
  • 2 bed in NE3: 5.61% Rental Yield
  • 3 bed in NE3: 4.76% Rental Yield
  • 4 bed in NE3: 4.08% Rental Yield
  • 5 bed in NE3: 4.33% Rental Yield

The NE8 postcode area covers Gateshead and Bensham. The average value of property in the NE8 postcode area is £122,280 with the average price paid for property, over the past 6 months, stands at £122,748. The NE8 postcode area offers the following expected rental yields:

  • 1 bed in NE8: 7.49% Rental Yield
  • 2 bed in NE8: 6.32% Rental Yield
  • 3 bed in NE8: 5.36% Rental Yield
  • 4 bed in NE8: 5.94% Rental Yield
  • 5 bed in NE8: 5.02% Rental Yield

On a purely financial level, the lower price of property and the higher expected rental yield for virtually all property sizes means that Gateshead would be a more attractive proposition for landlords and investors. It is important to remember that not every investment is about the financial return (on paper) and there may be reasons why an investor would prefer to buy property in the city centre of Newcastle or in an area like Gosforth or Great Park.

 

What these figures show though is that there are a range of options to consider and no matter what budget you have at your disposal or what sort of return you are keen to obtain, there should be an area and property type in the North East that meets your needs.

 


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