Newcastle is the capital of the North East.
With its population of roughly 1.7 million Tyneside has a very rich and diverse property market. Newcastle is a city filled with many business parks, this means there are a lot of people living and working in this area who will need to rent somewhere to live.
The Royal Mail survey found that Newcastle was one of the best areas to live due to its culture and affordable housing. The average house in Newcastle only costs £128,000. Alongside it’s cheaper than average house prices there are also strong annual rental yields of roughly 8.5%.
But which areas are the favourites? Let’s take a look.
- Newcastle City Centre
The centre of Newcastle is an incredibly popular area for buy to let properties. The average house price here is £270,000. The higher house price is due to the fact that waterfront rental properties in this area are incredibly desirable. The City Centre of Newcastle boats beautiful historic buildings alongside conversions and new build apartment complexes.
Jesmond is an inner-city area which is known for being trendy and residential. It boasts many shops, restaurants and bars. There is a large student market and it remains popular with young professionals and young families.
Gosforth is close to the City Centre, it’s a smart suburb that is considered by many to be the best place to live in Tyneside. This is due to its proximity to local amenities including Newcastle airport and the A1 motorway. This area can provide a 5+% yield.
- Benton and Longbenton
This area is divided into two parts. Benton is the older area and Longbenton is the newer area. These are slightly further away from the city centre although they are both on the metros path. Meaning city access is available for those who commute. The average property price is £140,000 making it popular with families and investors looking for buy-to-let properties.
- Byker and Walker
The East areas of Newcastle are home to some of the area’s cheaper property. The average house price here is £130,000. This area is rated by Totally Money as one of the top 6 in the country for the best rental yield opportunities. Yields of 8.5% per year are not uncommon.
- Benwell, Fenham, Elswick and Scotswood
West Newcastle is one of the cheapest parts of the city but also the whole country as a whole. The average house price in these areas is around £75,000! These low property prices mean that annual rental yields of 6% are common.
- Whitley Bay, North Shields and South Shields
As well as having a waterfront, the North East also has a seaside. These areas are popular with families and also retirees as they provide good travel links with the city centre. The cheapest area out of the coastal areas is the up and coming North Shields which has an average house price of £149,000.
Gateshead is on the other side of Newcastle Upon Tyne but offers great access to the city by train and metro. Its biggest attraction is that it’s house prices are lower than most of Newcastle. Yields here can get up to 7 % annually.