Stockton-on-Tees is situated on the north bank of the River Tees in the county of County Durham and is known for its historical significance, industrial heritage, and vibrant community. With an ambitious future vision, Stockton-on-Tees property investments offer a fantastic opportunity.

Stockton-on-Tees: A City Guide for Buy-To-Let Investors

Stockton-on-Tees is a Borough of wide contrasts made up of a mixture of busy town centres, urban residential areas and picturesque villages. 

Stockton-on-Tees population is projected to increase by 7% in 2030 then by a further 3% in 2039 leading to an increasing demand for property. It is estimated that 600 new homes will be required annually between 2017 and 2032.

With a housing strategy in place to support housing growth, meet housing needs and to support vulnerable people, Stockton-on-Tees is an ideal choice fo buy-to-let investors.

An Introduction to Stockton-on-Tees

Stockton-on-Tees is a town and borough located in the northeastern part of England, in the county of County Durham. It is situated on the north bank of the River Tees and is known for its historical significance, industrial heritage, and vibrant community.

Historically, Stockton-on-Tees played a vital role in the industrial revolution, particularly in the 19th century when it became a major port and transportation hub for industries like coal mining and shipbuilding. The town’s connection to the River Tees and the development of the railway network contributed significantly to its economic growth during that era.

Today, Stockton-on-Tees has transformed into a diverse and modern town with a mix of urban and suburban areas. The town offers a range of amenities, including shopping centres, cultural venues, restaurants, and recreational facilities. It also benefits from its close proximity to other major cities such as Middlesbrough and Durham.

Some notable landmarks and attractions in Stockton-on-Tees include the Infinity Bridge, the towns historic Stockton High Street, Preston Park, Tees Barrage (an engineered structure controlling the flow of the River Tees), ARC (Arts Centre Stockton) and Ropner Park.

Stockton-on-Tees also hosts various cultural and community events throughout the year, contributing to its lively atmosphere and sense of community.

The town’s location near the River Tees and its historical significance make it an attractive place to live and invest in property.

"Stockton-on-Tees population is projected to increase by 7% in 2030"

Why Invest in Buy-To-Let Property For Sale in Stockton-on-Tees

Property Prices

Stockton-on-Tees is known for having relatively affordable property prices compared to other larger cities in the UK. This can make it an attractive option for investors seeking a lower entry point into the property market or for those wanting to expand and diversify their portfolio.

According to Rightmove, the average property price in Stockton-On-Tees over the last year was £155,212. A majority of sales were semi-detached houses which sold for an average price of £161,536. Terraced properties sold for an average of £110,944, with detached properties fetching £265,772, much less than other popular buy-to-let locations. For example, properties around Manchester had an overall average price of £296,467 and properties in London had an overall average price of £777,315 over the last year.

In terms of capital appreciation, overall, sold prices in Stockton-On-Tees over the last year were 5% up on the previous year and 11% up on the 2020 peak of £139,405. This creates an opportunity for buy-to-let investors to make an immediate monthly income as well as long term capital gains.

Rental & Social Housing Demand

2021 census data showed that 66.2% of the population of Stockton-on-Tees owned their property outright or with a mortgage. 17% privately rented their property and 16.3 lived in socially rented accommodation. With an increasing population experiencing economic growth, rental demand is set to increase. As we mentioned above, It is estimated that 600 new homes will be required annually between 2017 and 2032.

With regard to deprivation, according to the Index of Multiple Deprivation (IMD) 2019, the Borough of Stockton-on-Tees is the 73rd (out of 317) most deprived Local Authority in England. There are of course areas within the borough with little to no deprivation. However, in the most deprived areas there is a strong need for social housing.

The need for social housing in this area has created a unique opportunity for buy-to-let investors to make high returns on an ethical investment which has a positive social impact. Social housing investments with 365 Invest offer attractive yields of 8-10%NET. They also track CPI, so investors have a safe and stable hedge against inflation. Properties come with long term leases with a guaranteed income so you never have to worry about that all important tenant to ensure you are receiving an income. Social housing properties also come with tenant damage and maintenance cover, protecting investors from unexpected expenses related to property damage.

Future Vision

Stockton-on-Tees has undergone many improvements in recent years and the borough council have a future vision as part of a huge ambitious ongoing regeneration project. They aim to further develop the Borough’s town centres, ensuring they are vibrant places which are economically successful, attracting investment and fit for future generations.

A strategy for the Business Park and Tees Marshalling Yards is being proposed which could see a nationally significant regeneration scheme for a Health and Social Care Zone, with potential for integrated training and health facilities, research and development.

Other key projects are underway including the huge waterfront development and proposals for a new Community Diagnostic Hub for the Tees Valley, delivered by the NHS.

The council have reported that due to the plans put forward, there is already wider interest from private developers who are keen to invest.

With Stockton-on-Tees set to benefit from many improvements and an increased interest from investors, economic growth is inevitable in the coming years, great news for buy-to-let investors. Economic growth leads to an increased workforce and therefore an increase in population and therefore rental demand.

Investing in Stockton-on-Tees Buy-To-Let Properties

Stockton-on-Tees offers a fantastic opportunity for buy-to-let investors to add to their portfolio in an area with low property prices and high rental yields. Stockton-on-Tees is undergoing a huge regeneration project, fuelling economic growth, positive for long term capital gains. For those looking for a hands off investment, the area offers the unique opportunity to invest in social housing and make a positive contribution to society while reaping the huge benefits at the same time. For more information about Stockton-on-Tees property investments, contact us at 365 Invest to speak with one of our buy-to-let specialists.

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