As the most populous city in the North East of England, Newcastle is the commercial, educational and cultural hub of the area. Its industrial and shipbuilding past have made way for financial and professional services, and its digital, science and technology sectors are emerging quickly.
Newcastle: A City Guide for Buy-to-Let Investors
Attracted by the low-cost of living and thriving cultural and nightlife scene, the city is attracting people and business to the area. In addition, the students of the five nearby universities have a strong retention rate within the city, bringing in a highly skilled and talented workforce to the area. Its affordability, high quality of life, and business prowess provide strong growth prospects and an attractive location for buy-to-let property investment.
An Introduction to Buy to Let Property For Sale in Newcastle
Newcastle upon Tyne, or more commonly just Newcastle, is a major economic city in the North East of the U.K. Historically it was known for its industry, including mining and shipbuilding, thanks to its location on the river Tyne, and the city has long been a strong economic contributor. More recently, the city has undergone a commercial and cultural shift. It is now known for being a varied metropolis, with thriving business in an array of sectors. It has strong economic output in finance, retail, tourism, hospitality and science.
The low costs of living in the city are attracting both people and business to the area. Businesses are exploiting cheap commercial costs, while workers can make the most of the city’s offerings, including it’s famous nightlife, landmarks such as the Tyne Bridge, and a thriving waterfront area. There is also ongoing regeneration of the city, including projects building new residential living areas within the city centre, as well as new conference venues and technology hubs. The growth and development offers incredible opportunities for buy-to-let investors in Newcastle.
"Newcastle is the heart of the North East and one of the fastest growing UK economies, currently home to over 70,000 businesses."
Why Invest in Buy-to-Let Property For Sale in Newcastle
There are a number of reasons why Newcastle is an ideal city for buy-to-let investors.
Economic & Business Growth
Newcastle is the heart of the North East and one of the fastest growing UK economies, currently home to over 70,000 businesses. Newcastle offers a perfect environment for businesses and workplaces, and it has strong foundations in a number of key sectors. Outside of London, Newcastle is growing into one of the largest creative clusters, with thriving software development and technical industries. What’s more, Newcastle is one of the six designated UK Science Cities, bolstered by its strong links to research intensive universities. This has developed a vibrant healthcare and medicine technology industry. Also, the links to the north sea allows strong offshore and renewable energy developments which benefit the city.
There is over £1.5 billion of investment planned for the city, including Newcastle Helix, an ambitious project to provide what is described as “A landmark 24-acre hybrid city quarter in the centre of Newcastle, built for international tech and science businesses, the local community and residents”. Further investment into enterprise and commercial developments, and low overhead costs, is attracting companies and their workers to Newcastle. This will continue to allow the city to prosper, and attract more investment opportunities.
The city of Newcastle is home to two major Universities, including the Russell Group affiliated Newcastle University. Between the campuses of Newcastle and Northumbria Universities, there are around 50,000 students in the city. In total, five universities are within an hour of Newcastle. This provides a strong student rental market which offers opportunities for property investors in Newcastle. In addition, the universities also generate a highly-trained workforce in the city. The cheap living and thriving cultural scene give the city incredibly high retention levels of graduates, supplying the area with talented employees and an abundance of young professionals seeking housing.
The city of Newcastle is becoming an ever more desirable place to live. Attracted by the low living costs and attractive city centre, more people are relocating to the city. The population of Newcastle is growing well above the national average. The 2021 census demonstrated over 300,000 residents for the first time, an increase in 7.1% in a decade with over 20,000 new residents. Property prices, despite consistent growth, are still well below the UK average. The average house costs £192,000 in Newcastle Upon Tyne, over 40% lower than the rest of England (Nov 22). This is not only attractive to buyers, but also to buy-to-let investors looking for good value. There are a range of exciting new property developments and regeneration projects currently underway.
The city is well connected which increases its desirability. The Tyne and Wear Metro connects parts of the city and the wider Sunderland and Tynemouth areas. Furthermore, the city’s airport is the second largest in the North of England, making it easy to get to and from the city. Newcastle is also famed for its nightlife as well as its shopping, and it is one of the highest retail spenders in the country. Combined with its landmarks, including the iconic bridges over the Tyne and the nearby Angel of the North, this has led to an increasing tourism demand in the city. The city’s bustling arts and cultural scene, with museums, galleries, theatres as well as national level sports teams are attracting more and more visitors.
Investing in Newcastle Buy To Let Properties
Newcastle’s growing and varied economic landscape, combined with its significant student population and new residents seeking lower living costs, presents a range of different property investment opportunities. It is a thriving and expanding city on the up, and with lower property costs compared to elsewhere in the UK it is a smart choice to expand your investment portfolio.