Newcastle has always been a popular area for investors purchasing buy-to-let properties, due to the lower property prices than in other parts of England. But what is the demand for renting and what areas are worth considering for your next buy-to-let property?
In this article, we’ll help to answer these questions and make finding your next project much less stressful. There are many great areas in Newcastle that have a high demand for rental property, and we’ll also talk you through the average property prices in Newcastle divided by smaller areas.
What is the demand for renting in Newcastle?
There is a high demand for rental property in Newcastle, with a growing population of over 300,000 people.
It has a high number of students living in the city due to Newcastle University and Northumbria University educating an average of 50,000 students across the area, and many people relocate to Newcastle for work opportunities in industries such as construction, transport, and financial services.
On average, landlords are said to collect around £1,501 Per Calendar Month (PCM), with an average rental yield of 6.8% for a long let. This is higher than the average rental yield in the UK of 4.75%, making Newcastle a good area to invest in rental property.
In the following sections, we’ll take a deeper dive into how individual areas of Newcastle compare when it comes to buy-to-let properties, including average property prices, average rental income, and rental yield.
Newcastle City Centre
Newcastle City Centre is a popular area for renting due to the high student population and impressive new build apartment complexes.
With an average property price of £179,388 and an average rental income of £1,277 PCM, this provides a rental yield of 7%. This is a great rental yield in comparison with the UK average and shows why it’s popular for investors and landlords.
Another area that is highly popular for buy-to-let properties is Gosforth. A small suburb close to the city centre, Gosforth is considered to be a great area to live for commuters and young families alike and is also near to Newcastle airport and motorway links.
Gosforth has an average property price of £311,665 and an average rental income of £1,654 PCM. This provides a rental yield of 5.3%, making it popular with landlords purchasing new investment properties in the Newcastle area.
If you’re a landlord looking to invest in a trendy part of the city where properties are worth a little more money, Jesmond may be a good choice for you. It’s very popular with students and is also desirable to young professionals and families.
An average property in Jesmond will cost around £500,000, with the average price for a rental property being in the region of £1,737. This area has a slightly lower rental yield of 3.4%, however, this is largely due to the high property prices in this area and you could likely charge a higher rental income than the average price.
Benton is an area worth considering if you’re investing in a tenanted property, with relatively low property prices considering how close it is to the city centre. This makes Benton highly popular with professionals and families and has good metro links into the heart of Newcastle.
A newer area of Benton is Longbenton, which is highly popular with young people and those looking for a modern place to rent a property. Longbenton is a cheaper area to buy than Benton, with an average property price of £183,584, and the average rental income is £932 PCM.
This provides a similar rental yield to Benton of just over 5%, making either of these Newcastle areas great options for buy-to-let properties.
If you have a lower budget for purchasing a rental property, Byker may be a good area for you to consider. It is known for its excellent rental yield and has become famous due to the popular TV series Byker Grove.
The average property in Byker costs around £116,311, with an average rental income of £1,415. The rental yield on properties in Byker is 12%, making it one of the most popular areas in Newcastle among landlords and investors.
Another area that is known for its high rental yield is Walker, an area close to the River Tyne that is known for being the hometown of X Factor celebrity Cheryl Cole.
A property in Walker costs an average of £134,728 and provides an average rental income of £1,269 PCM. With an average rental yield of over 9%, Walker is highly popular with landlords due to its rental yield of double the UK average.
An area on the River Tyne’s southern bank is Gateshead, which is another area that provides a good rental yield for landlords looking to invest. Gateshead is known for being the home of the BALTIC Centre for Contemporary Art, as well as the site of the Gateshead Millenium Bridge which was opened in 2001.
The average property price in Gateshead is approximately £159,195, with an average rental income of £1,325 PCM. This provides a rental yield of 8.3%, which is why it’s so popular with landlords and investors.
How We Buy Any Home Can Help
Hopefully one of the above areas has jumped out to you as the area in which you’d like to buy your next buy-to-let property. For more information on this topic, check out this resource on whether Newcastle is a good place to invest in property.
If you already own a tenanted property that you’re looking to sell, look no further than We Buy Any Home. We specialise in helping landlords achieve a quick property sale at a great price, without disrupting any tenants in situ. This can be particularly beneficial if you need to sell a property quickly, or if you have a good relationship with your tenants and are keen to protect their home when you sell.
We have many years of experience selling tenanted property in Newcastle, and once you’ve received a cash offer from us you could have the sale funds in your bank account within just 7 days.
Reach out to We Buy Any Home today to get the ball rolling on your tenanted property sale.