Due to trends that emerged from the pandemic, house prices dramatically increased in 2020 and well into 2021, and are still rising, which means the asking prices of sellers have been at the least met and in a lot of cases have been exceeded.
Fewer properties coming to market, whilst demand has been increasing, has meant prices have surged. Research shows that the total amount of houses for sale has decreased by 26% since 2020, a trend predicted to remain in place until 2022.
The result is a sellers’ market, where competition is ‘hot’ amongst buyers and the whole of the country is feeling the drive upwards in prices. But what about in the Northeast?
The Rising Market in the Northeast
Even in this heated market the Northeast of England remains one of the ‘lowest price point’ regions for properties of all styles and sizes, despite outperforming growth in house prices in Liverpool at 9.4% and Manchester at 7.7%.
According to the recent HPI report, the Northeast has witnessed an 11.8% annual change in house prices in the last 12 months, which is the second highest out of any other region in the country.
This coupled with a strong demand for housing and market standard rents, investors can also achieve a yield, far exceeding those counties further South.
People Relocating to the Region
Prices are already high down South, with research showing that the average cost of a home in London stands at over £660k, which could, therefore, be a prediction of a drive North for those feeling outpriced in the South East.
In fact, the region has already witnessed a rise in house buyers, even before the pandemic. A recent study, cited in a Guardian article, found that the amount of people moving to the North since 2014 had more than doubled, with Newcastle upon Tyne being listed as one of the most popular cities for people to relocate to.
The North East’s unemployment rate has also fallen drastically since 2014, from 8.1% in January of that year to 6.5% in December 2020, says the North East Local Enterprise Partnership. This means that it is likely there are more jobs in the area, especially since, now, it appears we are heading out of the pandemic. With major employers such as Amazon, Nissan, Virgin Money and SAGE and the 2030 Renewable Energy project in Blyth Northumberland the area is becoming more attractive for those seeking work, lifestyle and an improved cost of living.
Future Trends in Property Investment
Cost of entry, demand for housing and an exodus North are just a few of the reasons you might want to consider Northeast Property Investment. No one can be certain whether, there may be factors that might throw a spanner in the works, as the government’s support schemes are ending on September 30, and the SDLT holidays also come to a close, but a cooling down of the market will swing the balance back in favour of buyers.
We have been in this market for 10 years, helping Investors discover what we already know……………….Is our long ‘well-kept secret’ of excellent pricing and strong yields going public? It appears so!