Talk of the Toon: Newcastle
There are so many statistics flying around the property market that publishers can be forgiven for making a mistake – a nought missed off or ‘submit’ pressed too quickly. When reading about the rise of property prices in the city of Newcastle, we assumed there had been a typo, but a double check with the source confirmed one of the most astounding figures seen in recent years.
Overall, sold prices in Newcastle city centre over the last year were up 55% on the previous year, according to Rightmove – property values that have doubled in 12 months and during a pandemic too. The property portal reports that flats in the city sell for an average price of £158,641, with terraced properties fetching £381,611 and detached houses changing hands for £420,000.
Newcastle estate agent Bricks & Mortar say that sellers can enjoy the ‘sturdiest’ property market seen for at least the last five years, with 47% fewer properties for sale today, when compared to 6 years ago, and a prediction that house prices will continue to rise during the remainder of 2021.
Newcastle’s eye-catching qualities, however, are in contrast to comparably low property prices compared to some other cities, despite astronomical rises. Let’s take a look at others. In Bristol, a city centre flat has an average price of £319,811. In Bath, it’s £372,522, while you’ll pay an average of £467,561 in Oxford. In London, the average flat costs £600,586 – almost four times the price of a similar property in Newcastle.
As well as offering exceptional affordability to owner occupiers – especially first-time buyers – Newcastle presents investors with unmissable returns. In fact, the city is currently one of the best locations to operate a short-let investment property, as the purchase price when combined with rental values produces show-stopping yields. A buzzing and popular University helps too.
A trio of reports all point in Newcastle’s favour. A pre-pandemic study by Luxury Cottages found that landlords who bought in cheaper cities, including Newcastle, enjoyed rental returns on a par with prime coastal locations. Additional analysis by hotel room platform Hoo dovetailed with this, confirming that Newcastle enjoyed handsome holiday let returns of 5.6% – outperforming the average yield seen in the overall buy-to-let market.
If you needed any further convincing that the city is a star performer, a study by Crafted Beds revealed Newcastle to be the most profitable city in which to start an Airbnb business. Its average ‘per night’ fee of £122 was the highest in the country, ahead of Leeds (£121.60), York (£120), Exeter (£118.60) and Cambridge (£105.60).
It’s also worth looking back to May 2021, when Viewber reported on the UK’s fast-growing Build to Rent sector, using figures from Ascend Properties. Newcastle was identified as the city with the biggest increase in Built to Rent rental prices. It ‘per calendar month’ charge had increased by 17% between 2019 and 2020 – almost double that of Leeds, which took second spot with a 6% annual rise.
If you are buying, selling or investing in Newcastle, we can help. We have Viewbers stationed throughout the city, who can accompany home movers, compile property reports, host open house events and even become a dedicated ‘check-in/check-out’ representative for Airbnb hosts. Contact us today to learn more.
