Is Newcastle a good place to invest in property?

It's all about the location.

This is one of the mantras that real estate investors have consistently followed over the years, and that should be at the heart of every investment strategy. The right location is key in finding tenants and maximising your returns. 

Located on the River Tyne in North-East England, Newcastle is one of the UK’s primary student, business, art, and science centres, which gives it a modern appeal. Although 2020 was a complicated year for the real estate market, Newcastle continues to withstand the crisis, and, according to the latest data, it’s still a fantastic place to invest in property. Newcastle is in the top 10 best rental yields in the country, and analysts have an optimistic forecast for the following years. 

Student accommodation – one of the safest investments in Newcastle 

Newcastle Upon Tyne saw the greatest percentage increase in rents over 2020, and has a large rental market compared to the UK as a whole. 

As one of the leading university centres, Newcastle has a student population of over 42,000, coming both from the UK and from overseas. The two-university city (The University of Newcastle upon Tyne and Northumbria University) is a great area to invest in property because, whilst property prices are lower in other significant University cities, the student-driven rents remain strong. In 2018, Newcastle had the highest rate of student housing in the UK, and one in every 15 properties was a student home – that’s ten times higher than the national average. Students have turned Newcastle into a young, vibrant city, as well as a real estate hotspot.  

The most lucrative neighbourhoods for student properties in Newcastle are the City Centre, Jesmond, Sandyford, and Heaton.

Newcastle is in high demand among young professionals. 

Although Newcastle is usually in the spotlight for its student properties, it also has a growing community of young professionals.  

Because Newcastle is home to an increasing number of business parks, young professionals from all across the UK are relocating here to boost their careers. According to a recent Royal Mail survey, Newcastle is now one of the best cities to live and work in the UK, surpassed only by London, Edinburgh, and Bristol. What’s more, Newcastle property prices are forecasted to rise by four times that of London in the following years, which makes it one of the biggest opportunities for investors.