Newcastle Property Investment

A guide on where to invest and how to secure the highest return on investment.

Newcastle property investment offers buy to let investors the opportunity to enter the UK’s property market at a lower price point than in comparable Northern Powerhouse cities. Those considering a Newcastle property investment will be pleased to know that property values and rental returns in the city are set to climb over the next 5 years, making it an ideal location to consider for property investment.

Welcome to Newcastle

Located in the North East of England, Newcastle upon Tyne is the largest city in the region. The city is home to a population of 813,807 and this figure is expected to climb to over 890,000 by 2035 according to the World Population Review.

The city’s population has a higher than the average number of people aged between 18 and 35 – a demographic that is often referred to as Generation Rent, making it an ideal location for buy to let investors. Newcastle is home to two world-class universities and a student population of over 42,000 (UCAS).

It also boasts a high graduate retention rate, with 36% of students staying in the city for work after graduating according to What Uni. The city has a large international student population that contributes £115 million to the economy (mainly Newcastle and the North East region) every year. For those considering Newcastle property investment, a younger population is great news as they are most likely to rent a home and, with an influx of students arriving in the city each and every year, there will never be a shortage of tenants entering the rental market.

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What’s in the guide?

  • Location Guide: Where to Invest
  • Which Asset Class is Best for You
  • Market Fundamentals
  • Why Now is the Time to Invest
  • Learn how to Maximise your ROI
  • UK House Price Forecast
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Is Newcastle a good place
to invest in property?

When it comes to selecting a location for property investment, location is one of the most important factors and can make the difference of a successful or unsuccessful venture.

Over the last 10 years, property investors have shifted their attention away from London and the South of England and have instead focused on key Northern Powerhouse cities that are often more affordable and produce higher rental returns.

Newcastle is a prime example of this trend and has attracted the attention of investors from all over the world.

Rising values

Most real estate investors understand that property prices are an effective measure of capital growth and are determined by market demand.

In the five years to 2021, the average value of a property in Newcastle has risen by 20.5% and has now reached £204,747 according to the latest data available from Zoopla (July 2021).

And, when it comes to the future of Newcastle property investment, buyers still have a lot of growth potential on offer, with the most recent forecast from Savills illustrating that average property value stand to climb by 20.5% by 2025.

One of Newcastle’s most attractive attributes is the price point of property - especially when compared to values in Manchester, where property prices can be around 14% higher than comparable properties in Newcastle city centre. What’s more, the Hometrack May 2021 Index ranked Newcastle as the cheapest major city in England to buy property.

Property investors, therefore, stand to benefit from a lower initial investment and, when factoring in additional costs, a significantly lower Stamp Duty rate is also another benefit of investing in property in Newcastle.

Rental yields

When we shine a light on the city’s rental market, buy to let investors are able to achieve higher than average rental returns. Despite the uncertainty caused by the pandemic, the June 2021 HomeLet Rental Index has shown that rents in the North East region have increased by an average of 4.2% in the year to June 2021.

Overall, Newcastle has emerged as an affordable location for property investors and with continued investment in the city’s infrastructure, universities and business districts, there are plenty of opportunities available for buy to let property investors to take advantage of.

Diversify your portfolio and invest in a fully managed,
income producing UK property

Our selection of UK buy-to- let properties offer reliable rental assurances,
so you will know exactly how much income you will generate.

Hadrian's Tower

Residential Buy-to-let apartments

Residential Buy-to-let apartments

  • Luxury city centre apartments
  • Completed and furnished
  • 5% NET p.a. for 5 years
  • Fully managed buy to let
View Investment

Studio 52

Student Property Investment

Student Property Investment

  • Completed studio apartments
  • 7% NET rental assurance
  • Furnished & fully managed
View Investment

Newcastle’s position in the
Northern Powerhouse

Ever since the UK government announced the Northern Powerhouse strategy in 2014, millions of pounds have been invested across the region, subsequently creating thousands of new jobs and has improved the prospects of businesses across the north.

Newcastle, for instance, is currently benefitting from an influx of public and private investment including the £350 million regeneration scheme for Newcastle Helix, £200 million investment into the Stephenson Quarter, and the £250 million arena planned for Gateshead Quayside just to name a few. In total, Newcastle is expected to see £1.5 billion of planned investment.

For those looking to take advantage of the influx of investment in Newcastle off the back of the Northern Powerhouse scheme have the opportunity to secure and significant and long-term growth potential.

According to Manchester Council, HS2 has is set to double Greater Manchester’s economic output to £132bn by 2050 and it will deliver 96,000 jobs to the region.

Other investments in infrastructure include the redevelopment of Manchester Piccadilly station which is set to create 40,000 new jobs and is one of the biggest development opportunities in the UK which will have a significant impact on the local and national economy.

As a part of HS2, Manchester Airport Station has been designed to improve the accessibilityt of the airport and to enhance the investment programme at Terminal 2. Over the next 10 years, the redevelopment plan is set to create over 20,000 jobs and will deliver new homes, offices, and hotels.

Newcastle student
property market

Home to two top-ranked universities and a large student population of 42,000 people, Newcastle is one of the UK’s most-loved universities cities. Its global appeal sees students attending courses at universities in Newcastle from all corners of the world. In total, international students make up 15% of Newcastle’s total student population.

Newcastle is continuously voted the best student city in the UK, with many people citing it as a friendly, welcoming, and affordable choice for students – and it was voted the 4th best for nightlife by the Whatuni Student Choice Awards 2020. In 2019, Newcastle was ranked joint 1st for affordability in the QS Best Student Cities. For university-goers, it is clear to see why Newcastle is a popular university city and why it also has an impressive graduate retention rate.

According to Knight Frank, the high quality of the courses on offer has seen student numbers increase at a rapid pace, creating a shortfall of university and privately operated PBSAs. The discrepancy between demand and supply has seen sharp rental rises, making the city an ideal location for buy to let investors to own either a PBSA or a residential property in Newcastle’s city centre.

For property investors, student market can offer higher than average rental yields and a regular income from an evergreen student cycle that refreshes in line with the academic calendar. Students typically agree to tenancies for a specified length of time, helping landlords to underpin their returns and avoid void periods.

Cities like Newcastle that boast vibrant university student communities and an upward trend in student numbers have already made property investment popular for those willing to expand their portfolio to include a PBSA or a residential property like Studio 52 close to the university campus.

Looking at the wider picture, UK has a large student population and despite the uncertainty caused by Brexit for EU students, the Higher Education Policy Institute has projected that England’s undergraduate student population will climb by 300,000 by the end of 2030. For property investors, student tenants could provide long-term and stable rental returns.

Newcastle is a fast-growing city

Newcastle is a fast-growing and ambitious city that has seen an exponential level of growth over the last 10 years.

The city has a growing digital sector and has started to emerge as an ideal location for digital entrepreneurs and start-ups who want to enjoy the benefits of being located in a Northern Powerhouse city, but do not want the higher outgoings of setting up in the larger cities in the north.

As mentioned before, Newcastle is undergoing a £1.5 billion pound transformation and with a large proportion of money going into developing the city, Newcastle is leading the way for innovation in the North East of England. Overall, the digital, media, and software sectors employ over 35,000 people in the region.

Some of Newcastle’s biggest employers include accounting software giant Sage, Deloitte, Virgin Money PLC, Nestlé, Greggs headquarters and so many more.

Newcastle isn’t all about work. It is also a popular tourist destination and was recently voted the 2nd best city to visit in England by hotel chain Staybridge Suites. With a large selection of rooftop and waterfront bars, plenty of open green space, and lots of places to shop, Newcastle has something to offer everyone.

The city is also the proud home of Newcastle United which generates substantial economic growth and provides around 2,000 jobs to people in the area.

What you need to know about Newcastle property investment

  • How much are properties in Newcastle?
    According to Zoopla, as of July 2021, the average price paid for a property in Newcastle was £204,747. The current average value is £233,097.
  • Are house prices rising in Newcastle?
    Yes, house prices in Newcastle have increased by 10.4% in the year to July 2021 according to Zoopla and have increased by 20.5% over the last 5 years. The latest forecast from Savills expects house price growth of 20.5% by 2025 in the North East region.
  • Newcastle property market forecast 2021
    Despite Brexit and the Covid-19 pandemic, the UK’s property market has remained resilient and is forecast to see values climb throughout 2021.

    The Savills Residential Research released in March 2021 reported that property values in the North East region will rise by 3.5% across 2021. This figure is slightly below the 4% UK average but, what is interesting is the lack of growth expected in London, with only a 2.5% increase expected.

    As the largest and most populated city in the North East, Newcastle is set to witness a steady climb in house prices across 2021.
  • Up and coming areas in Newcastle
    When considering Newcastle property investment, it is wise to consider what part of the city has demand for rental property and which locations appeal to locals.

    Up and coming areas in Newcastle include pockets of the city centre that are walking distance from the vibrant selection of bars and amenities it has to offer, the quayside area by the River Tyne and the iconic Tyne Bridge, and parts of the city centre that are close to both Newcastle University and Northumbria University campuses.

    Despite the size of the city, Newcastle city centre is relatively small, with all main attractions easily accessible on foot, making city centre apartments ideal for buy to let investment.
  • Investment in Newcastle city centre
    With an estimated £1.5 billion worth of public and private investment, Newcastle is undergoing a rapid and extensive regeneration, making now a great time to consider investing in Newcastle property.

    Just like its Northern Powerhouse counterparts, Newcastle has been injected with significant levels of investment over the last 7 years and with a strong pipeline of commercial, infrastructure and residential developments, the city is showing no signs of slowing down.

    Offering a lower entry level onto the property market, investors stand to witness a similar level of growth in terms of rising property values by 2025 when compared to Manchester and Liverpool. For investors who wish to diversify their property portfolio, an investment in Newcastle city centre has the potential to provide regular rental returns and capital growth potential.
  • What is the best property investment in UK?
    From off plan property to new-build apartments, from student accommodation to commercial and semi-commercial developments, the UK has plenty of variety on offer for property investors.

    But what is the best property investment in UK? And how do investors decide on what type of property to invest in?

    Typically, there are multiple factors that go into deciding what type of asset class to invest in and the best property investment will vary for each person depending on available, objectives including rental returns or capital growth, the amount of time they want to hold onto the property for, or even how much time they want to spend managing or maintaining the property itself.

    Residential buy to let property is often the best choice for property investors. With demand for rental property at an all-time high, investors can secure reliable returns and have the potential to benefit from rising property values. Residential property is also a simple business concept for buyers to adopt and, due to the familiarity of the sector, is one that appeals to a wider range of investors.

    For those who are ready to diversify an existing property portfolio, a fully managed apartment within a purpose built student accommodation development is a great option. The low entry level of the asset class and the higher than average returns make it a good choice for investors who want to branch out into a new sector of the property market without spending all of their budget.
Minimum
7% NET yield
Realistic and reliable rental assurances for up to 5 years.
Ideal for UK and
overseas investors
Low entry level properties, ideal for portfolio diversification.
Prime locations
with high demand
All developments are located in popular UK university towns and cities.
Armchair
investment
Fully managed and furnished student apartments.

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Our team has over 50 years of experience working in the UK property industry and knows how to select opportunities that provide real growth potential.