Now is a fantastic time to invest in the vibrant city of Newcastle upon Tyne. The city is flourishing as millions of pounds of investment has resulted in Newcastle becoming well-known as a world class destination for culture, science and industry. As well as attracting over 50,000 students from all over the globe to the two universities. The North East as a region successfully achieves a 42% graduate retention rate, which is the highest outside of London, so not only is Newcastle’s rental market strong in the student sector but also for post-graduates and young professionals. Since 2011 the number of students remaining in the North East to work after graduating has increased by over 8% according to the Higher Education Statistics Agency (HESA).
Newcastle’s rental market
Thanks to initiatives such as Newcastle Science Central, the One Core Strategy and the Urban Core plan, millions of pounds of investment is continuing to bring new businesses and further investment into Newcastle and attract a highly skilled workforce. Average gross yields within Newcastle can vary depending on the area; from 5-6% in smaller units within the city to 7-10% in the larger Houses in Multiple Occupation (HMOs) in prime locations such as Jesmond, Sandyford, Spital Tongues and Heaton.
Newcastle upon Tyne’s private rented sector accounts for 13.2% of housing occupation. For investors, this compares favourably against a national average of 12%. Regionally, gross rental returns in the North East stood at an average of 7.1% in Q4 2012, making it the highest in the country and well ahead of the national average of 6.1%. “There will be a growing demand from professional tenants specifically for one and two bedroom apartments in Newcastle City Centre, Newcastle-Gateshead Quays and the Ouseburn Valley as well as the traditionally popular suburbs of Jesmond, Sandyford, Heaton and Spital Tongues. The future of Newcastle Gateshead is based upon education and economic progress and they are both bringing people and prosperity to the region. The revival of the area is well under way and Walton Robinson is excited to be a small part of the story.”
Did you know?
There are 1.6million people within a 45 minute drive time of Newcastle.
The average rent in London is a massive 53% of an average single person’s salary whilst in the North East, it is just 25%.
UCAS reported that UK University applications increased by 3.3% in 2013. Newcastle University attracts an average of seven applications for each course place available and Northumbria University has been receiving an average of 4 applicants per place.
The North East’s key sectors are; Creative & Digital, Science & Health and Offshore & Marine.
Grey Street in Newcastle City Centre has been voted the best street in Britain and the city is full of beautiful architecture- from modern designs to buildings from the sixteenth century.