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Newcastle Market Insight – Q1 2021

By Surrenden Invest | January 12, 2021

Newcastle Market Insight – Q1 2021

By Conor Kilcoyne, Senior Property Consultant

With a range of topflight sports teams, historical & cultural experiences, shopping & leisure facilities, and an attractive nightlife one could say the Newcastle community is a proud one. As well as an established community, Newcastle is fast becoming the most sought-after buy-to-rent market in the UK for investors seeking greater capital growth and a more attractive yield than the go-to regional cities can now offer.
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Property values in Newcastle are 14% lower than that of Birmingham and Manchester.

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Newcastle is one of the fastest regional growing economies in the UK.

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Over 33% of graduates from Newcastle Universities go on to live and work in the city .

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Arc Avenue is set within the heart of the £60m Gateshead Quay re-generation project.

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Newcastle property prices have experienced 78% growth since 2000.

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20,000+ students study in city highlighting the need for high quality accommodation.

Commercially, Newcastle has never been so strong with large global corporations such as Siemens, Sage PLC, Nestle and Proctor & Gamble occupying office space and setting up UK headquarters throughout the city.
Newcastle plays host to two of the UK’s leading universities: Newcastle University and Northumbria University. Newcastle University is often regarded as the leading university for Computer Science in the country, producing the next generation of tech entrepreneurs who will flourish in the city. Factoring in the North of Tyne Devolution deal which will see annual growth in economic output of £1.1bn and 10,000 new jobs, Newcastle’s already growing base of young professionals (33% of all graduates settle and work in the city) looking for quality, affordable accommodation is only going one way.
According to the PP index, it was not until 2019 that property prices in Newcastle recovered to pre-2008 levels. Comparing this to other post-industrial cities such as Birmingham and Manchester who recovered as quickly as 2014, real estate in Newcastle is now well-positioned to out-perform the rest of the UK. Development is set to surge from 2022 onwards with developers applying for planning with local councils in increasing numbers.
Newcastle remains one of the more affordable buy-to-rent locations in the UK, with property prices currently 15% below rival cities, such as Manchester. However, with continued investment into the city we are seeing property prices begin to soar. This means that Newcastle is primed for sustainable capital and rental growth for many years to come.
SALES MARKET

23.46%

Property values up 3.9% over the past 12 months and 23.76 over the past five years.

14.0%

Newcastle property prices are 14% lower than Birmingham & Manchester.

863,000

Newcastle’s population is expected to grow by 863,000 by 2030.

RENTAL MARKET

6.52%

Newcastle postcodes boast one of the highest average buy-to-rent yields in the UK, at 6.52%.

2.5weeks

The average property is let within 2.5 weeks of going to market.

33.33%

Over 33% of university students stay to work in Newcastle.

Due to Newcastle’s growth, Surrenden Invest have acquired exclusive access to the best investment opportunities in the city. These opportunities strengthen our already healthy nationwide development portfolio.
Please do not hesitate to contact me if you would like to discuss the investment case for Newcastle in greater detail or find out more about our latest opportunities in the city, such as the recently launched Arc Avenue, a waterfront Grade II Listed period conversion.
Conor Kilcoyne
Senior Property Consultant
conor@surrendeninvest.com

For regular updates and advice on investing in Newcastle Buy-to-Rent property, follow Surrenden Invest on social media or get in touch today.

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