Some property investors and landlords will always look close to home. There is something to be said for investing in what you know. Also, if someone wants to be a hands-on landlord, it makes sense they live close to the property they own.
However, the most crucial factor in determining where they invest is the expected yield for most investors. When you invest in making a return, you should focus on enjoying the best use for your money.
London might be an exciting place to live, but the high cost of property makes it very difficult to enjoy a reasonable return on your time and money. Also, there is considerable competition in the capital.
Savvy investors look further afield, and the North East of England is enticing property investors.
There is still high demand for property here, so landlords aren’t concerned about void properties generating no income. Also, the average cost of property is much more affordable than what is on offer in the capital or across Southern England.
The North East is far more affordable for property investors
As of February 2022, Rightmove states the average price of property in London as £778,028 whereas in Newcastle Upon Tyne, the average price of property is stated as £235,929. For Durham, the average price of property is listed as £200,989. Even the average price of detached properties in Durham, listed as £305,383, is far more affordable than what is available in the capital.
Businesses are turning to the North East of England
It is always a good sign for property investors when major companies set up in an area. These businesses need employees (even in a time when remote working is rising), and this drives demand for property.
In 2021, companies like Amazon, Just Eat, Thoughtworks and Xplor set up or increased their presence in the North East of the country. 2022 has started in a similar manner. Arctic Wolf intend to base their European headquarters in Newcastle and Version 1 have made further inroads into the city.
There is a growing cluster of cyber security and Fintech (finance technology) firms operating in or moving to the area.
The North-East England Chamber of Commerce has also been prominent in recent months, capitalising on the focus of COP26. The Chamber’s assistant director of policy, Rachel Anderson, describes as “an unrivalled base on which to build a global energy sector right across our region”, and is welcoming more firms to this part of the country. With companies needing to be greener, the North East is the ideal setting for forward-thinking businesses.
The North East makes sense for property investors
Therefore, the basic principles that investors look for are in place in the North East of the country. There is demand for homes, and this demand is rising thanks to more jobs becoming available. The property is affordable for investors, allowing a good return on investment.
Also, alongside new firms coming to the area, infrastructure is improving, making travel easier, and ensuring there is more to do for people when they are here.
London will always have a market for property investors, but the benefits of the rest of the country are becoming apparent. This is why more investors are turning to the North East of England, and we are perfectly placed to assist you find out more about this region, and the opportunities awaiting you.
Contact Urban BASE for all your North East property needs
If you would like to discuss investing in North East of England property, we are always happy to help. Call us on 0845 6431186 today.