Property market in North East England

[totallyproperty]

The north-east of England property market has shown signs of life over the last few years with areas as Newcastle, Sunderland, Middlesbrough, Hexham and other prominent towns and cities attracting the interest of property investors. What is your view of the north-east property market and do you believe that the economic tide is turning in favour of the area?

 

[Publican]

I have a friend that bought a 3 bed link detached property in a village near Durham six years ago. He paid £97K ( New) Recently valued at £87K But the agent said she could let it out for £500 PCM and it would let it within a week. Seems to be a no brainer for the buy to let investor?

 

[iceton]

I own properties in York ,Goole ,Newcastle, Ashington, Bishop Auckland and Consett, the latest buy in Consett in Nov 2013 , selling prices are definitely steadily on the up although rental increases are out of the question for the time being despite the actual rental market being quite strong. I think when the recovery fully takes hold and the housing market is firm again the NE will be one of the top areas in UK for capital appreciation and rentals will steadily increase.

 

[totallyproperty]

Hi Publican

A yield of over 6%, with the chance of long term capital gain, looks good to me especially compared with interest rates at the moment.

Hi Iceton

I am actually originally from the NE of England and I agree with your comments - the working environment is very different to the impression many "down South" have and the property market is starting to pick up.

 

[Veronica]

The North of England has always been the poor relation to the South despite some beautiful countryside, not only in the property market but in many other fields.
Personally you would have to pay me to live in London or the home counties.
House prices in the North east are at least affordable for first time buyers unlike the South.
I lived for over 20 years in North Yorkshire before moving to Cyprus and if I had to return to the UK that is where I would go back to even though my roots are not there.

 

[totallyproperty]

There is still something of a North/South divide although the threat of independence by Scotland might prompt UK governments in the future to be a little more interactive with those in the North?

 

[iceton]

Like you Veronica I used to hate London but the last few years Ive grown to like it and the Southern Counties a lot more at least to visit anyway, don't think I could ever live down South though as we have a totally different mindset from up North.

I think property prices in the North will steadily climb and the North South differential gap will decrease but over a long period of time though, affordability will be a major factor where the cost of even a minute 1 bed flat in the South could buy you a decent 2 bed house in the North and also our major towns and cities are fast becoming very modern and desirable places, I remember Newcastle being a boring dump of City not so long ago and now its thriving. EU immigration is also a factor I have three of my props tenanted by EU immigrants, all working and never a months arrears or problems from any of them btw.

 

[totallyproperty]

Hi Iceton

I went to college in Newcastle 20 years ago (showing my age lol) and the difference between then and now is like night and day.

Regards,

Mark

 

[totallyproperty]

Hi Iceton

I went to college in Newcastle 20 years ago (showing my age lol) and the difference between then and now is like night and day.

Regards,

Mark