Newcastle best areas to invest in a buy-to-let
Newcastle is a bustling city that is growing with investment potential each day. Having both a waterfront and seaside make this city a unique option with lots of growth. The economy has transformed from olden days of coal mining, and the city has become ripe with job options available in all sorts of fields. The local universities bring in thousands upon thousands of students ready to be educated.
With all this growth, people need houses to rent. In this guide, we will go into detail on great areas and reasons to invest in a buy-to-let in gorgeous Newcastle upon Tyne.
Why Newcastle?
Newcastle shines with character sitting upon the River Tyne. Its character comes through in its history, culture, and modern growth.
Population
The city of Newcastle is an industrial powerhouse that sits in the centre of Tyne and Wear county. Although the city itself is quite small population-wise, it swells throughout the day due to commuters from nearby cities.
There are approximately 292,200 residents in Newcastle. Largely a commuter city, thousands of people swoop in through the day for school, work, and entertainment. As a matter of fact, when you take the surrounding areas into consideration, the city grows significantly. Including the wider Tyneside area and Tyne and Wear county, the population rises to more than a million.
History
Newcastle is known for being the capital of the north east of England, but it is steeped in economical and industrial history. Its contribution to the sea trade has made Newcastle an important cultural part of Britain and the United Kingdom.
Coal mining and shipbuilding were an integral part of Newcastle’s history. Its economy has since raised from the sooty grim of heavy industrial life to more modern business parks and automotive industries.
Life in Newcastle
With the rise of business parks, jobs of all sorts are in high demand. Affordable housing and renting options have made Newcastle a hub for those wanting to be close to the high job growth.
The University of Newcastle upon Tyne enrolls about 23,000 students who seek places to rent near their university. Another school in the area, Northumbria University, has two campuses in the area. This university enrolls approximately 27,000 students.
High job growth and a large student body both bring many people to the city who seek a place to call home. Metro stations are planning to expand, and these are also popular places for rentals.
Rental Demand in Newcastle
When is a good time to invest in a buy-to-let? Should you start looking now? What is the demand like in Newcastle?
These are smart questions to be asking before jumping into getting a buy-to-let. The good news is that rental demand in Newcastle is hitting a strong stride right now. Newcastle is one of the top places in the country for rental yields.
The city center of Newcastle with a postal code of NE1 is estimated to provide a 6.24% yield for even just a one bedroom property. It caps out at 6.92% yield for a two bedroom property and dips down to 4.99% yield for a three bedroom. Families or students with roommates may consider a four bedroom property in the city center and this is expected to bring in about a 6.58% rental yield.
For those seeking a good investment, now is the time for many areas throughout the city. Many locations offer affordable housing even outside of the city center as well.
Best Areas to Invest
As you can see, Newcastle is an abundant city with plenty to offer in regards to jobs, schools, and growth in general. With the population rising and new businesses and jobs becoming available, that is not likely to stop anytime soon. Buy-to-let properties are a great investment, but it helps to know what each area of Newcastle is like before making a decision.
Benton and Longbenton
Benton and Longbenton are a bit further from the city center. Both parts are conveniently located on the Metro network, so a commute will be necessary to get into the city. Those who want a quieter life outside of the hustle and bustle will love this area. Typically, families enjoy these mid-priced homes.
The population of these two areas is about 20,900, which will feel quite small and homely when you get home from the city. The average cost of these homes is about £145,000.
City Center
The big city has plenty of available options for those seeking to buy-to-let. Apartment blocks and period properties are all available to choose from. One of the beautiful features of this area is the availability of waterfront views.
City population is about 10,100 and the average cost of a home in this area is £274,000.
Gosforth
Gosforth is one of the most popular places for buying right now due to its great location near the city centre, good schools, and even amazing local shops. The Newcastle Airport is also within close distance.
The population is 21,500 and the average cost of the houses in this area are £250,000.
Jesmond
Jesmond is a quaint residential area that is perfect for those looking to rent to younger individuals. Students and young professionals will enjoy the unique options available for dining, bars, and fun shops. Heaton and Sandyford are also great areas to check for similar spots.
Jesmond’s population is 22,000 and the average price of houses in this area are £224,000.
Coastal Areas
This includes areas like Tynemouth, North Shields, and Whitley Bay.
Newcastle has a seaside and waterfront to attract those who like a view. Popular with families and retirees, these areas offer a good commute and nice scenery.
The population of these areas is 31,700 and the average price range of a home falls between £150,000 and £290,000
East Newcastle
This includes Byker and Walker areas.
One of the cheaper locations, this is great for those looking for a bargain.
The population is about 32,000 while the property costs average around £135,000.
Conclusion
Whether you are wanting to invest in a property for a family, student, or young professional, there is something in the great city of Newcastle for you. Get it while it’s hot. Invest in a property now and be met with affordability and easy options to fit around your needs.
