Often seen as a poor relation to other, more prosperous areas, North East England has a vibrant community and arts scene, beautiful countryside and is home to around 500 top global companies. Though the heavy industry that was once the backbone of the region has long gone, it has left behind a strong work ethic and an adaptable employment force among the local population.
The area's main city, Newcastle has seen a huge amount of regeneration and also offers access to fabulous countryside and some of the best beaches in the country. Recently lauded as the ‘London of the North East', it's the main business hub of the region and has done much to attract arts, retailers and businesses. Gateshead Quays is a showcase of successful redevelopment. As a university town, Newcastle also has a large number of students that makes up 16 per cent of its total population and gives a substantial boost the buy-to-let market. According to agency Knight Frank buy-to-let makes up 23 per cent of total property holdings in the city.
The historic city of Durham, a UNESCO World Heritage site, also offers potential for buy-to-let with a more affluent stream of students but prices in the city are already some of the highest in the area. The same is true of attractive small towns north of Newcastle, such as Alnwick and Alnmouth, which are sought after by commuters and families and are, therefore, more expensive.
Some of the UK's most deprived areas fall within the North East region, however programmes of regeneration are underway and may offer opportunities for increased investment and growth in time.
Better quality of life, close knit and friendly communities and a lower cost of living are all reasons people move to this region.
Types of property
In the urban centres of Newcastle, Gateshead and Sunderland, first-time homes such as one or two-bedroom Victorian terraces, and flats built around 20 years ago, cost from around £60,000, depending on area. Three-bedroom terraces and 1930s/1940s semis start at around £100,000, while yuppie-style city centre and new quayside apartments command £140,000.
Property is cheaper in Middlesbrough, Hartlepool and Darlington -with terraced homes available from just £50,000.
County Durham has traditional terraces and apartments in attractive small towns such as Barnard Castle and Bishop Auckland, starting at around £110,000, with prices in the city costing about £200,000 for a small three-bedroom semi. Small detached new-builds and older style bungalows sell for £250,000, with larger historic or country properties on the market for around £500,000. Expect to pay in the £1 million region for large, rambling Victorian and Georgian farmhouses with land.
Northumberland offers modern terraces and apartments in hot spots such as Alnwick, Berwick-upon-Tweed and Morpeth starting at around £140,000. Pretty stone cottages and townhouses however will set you back £250,000. Family-size homes in coastal locations such as Blyth or Seahouses are slightly cheaper at around £240,000, while you will pay double for a detached property with land.
Investment potential
House prices in North East England have been consistently lower than southern areas of Britain, however, according to recent figures from the Department for Communities and Local Government, prices have actually risen by 9.4 per cent since February 2006, offering the fifth largest growth of England's regions and average prices of £144,213. However this is still the lowest average price in the UK. In Newcastle the supply of new apartments has caught up with demand and prices have fallen by around 1.4 per cent recently.
Despite having sought-after locations where property regularly costs £1 million plus, the region has some of the least affluent people in the UK. As a result, prices in certain areas, notably the smaller towns, have remained low, however, the ratio of average UK wages to affordability is better here than elsewhere. In addition to local purchasers, the market is attracting two types of buyer - those priced out of other regions seeking better value for money, and buy-to-let landlords, who are investing in areas that may still offer the potential for reasonable rental returns. Average rents in the region are around £350 per month, producing an average yield of approximately three to four per cent.
Largely deprived areas around the Middlesbrough and Darlington region are deterring investment, but some developers have been moving into the area, buying up and improving property for the lower end rental market.
Popular buying locations
The more affluent buyer is attracted to rural locations and market towns such as Morpeth, Alnmouth and Alnwick, famous for its castle and which often sits at the top of quality-of-life league tables. Durham is also popular for its beautiful and historic centre, including stunning cathedral and castle, and highly rated university, which brings student life and culture to the city.
Some areas of Newcastle are pricey in comparison to much of the property stock available. Two roads in particular (Lindisfarne Road and Fencer Hill Park) are selling for over £1 million. Gosforth and West Jesmond are also highly desirable.
Up-and-coming areas
The Tees Valley area that borders Middlesbrough, Darlington and Hartlepool is subject to a massive regeneration plan, offering hundreds of new homes, substantial new infrastructure and an art gallery. Gateshead also continues to revitalise its dated town centre, along with regeneration of existing neighbourhoods and construction of new entertainment and leisure facilities on the river.
With thanks to BuyAssociation.
