It’s no secret, well, at least not anymore, that over the past 12 months, interest in North East England has increased, which means that it’s the ideal place to invest in a property for yield and potential gain.
The region has witnessed huge growth in the past few years. Recent figures show that, in 2018, the goods and services produced by workers in the North East had a value of approximately £41b. As a result, it appears to be the upcoming place for new developments, which, as the North East Strategic Economic Plan in 2019 pointed out, leaves a strong opportunity for growth in more areas, such as digital and manufacturing. This could mean that more people will relocate to the region for jobs, bringing opportunities for investors to meet the demand in housing.
The Past 12 Months
During the past 12 months, in particular, the region has seen an increased interest from investors looking to purchase properties. This is likely due to the current housing market in the area, with an annual house price growth that’s currently the highest in the country. In the year to August, house prices rose by 13.3%, which was closely followed by the North West at just over 12% and the West Midlands, which had seen an annual increase of 11%.
Rise in Housing Demand
There are several other reasons why the region is seeing an increased interest from investors. In general, the pandemic meant that we had the time to evaluate whether we were content with the space our homes provide. And, it turns out, that many of us elected to stay put and extend their homes and those that weren’t joined those trying to move or invest into a temporary limited supply of property, which now had potential buyers from outside the area, resulting in a buying frenzy, leading property prices to rise. The march North is evidently here to stay, due a number of significant material changes.
Stamp Duty Holiday
Of course, let’s not forget the ‘stamp duty holiday.’ Introduced in July 2020 and eventually ending on September 30 the following year, for the most part, it meant that those who purchased a property for under £500,000 did not have to pay stamp duty. It aimed to boost the struggling property market at the time. And, it’s fair to say, it worked. However, this applied to every region so what else, specifically, has been happening in the North East?
North East Becoming Property Hotspot
Last month, figures identified the North East as the ‘UK’s Buy to Let Property Hotspot.’ Using data from Property Forecaster, where properties in England and Wales are provided with a ranking between 1 and 10, the higher the number meaning the more likely their value is to be increased, Property Investor Today reported that the region is currently leading the way.
With the monthly forecast made up of ‘diamond’ locations, which hold the highest scores, Washington took the number one spot in their top 10. This was swiftly followed by Hartlepool, Sunderland and Newcastle, which also managed to find a place. Therefore,
it’s easy to see why the region is gaining more recognition when it comes to housing.
Changing Reputation of the North East
As reported by the Guardian in August, the North East is set to be the location of the largest Offshore Wind Farm, in the North Sea, which is reported to be on target to change the region’s reputation, creating thousands of green jobs. More relocating means increased interest for investors and, having read articles like this, they will want to invest in no time.
More People Moving Rural
Finally, the pandemic has witnessed an increased interest in moving to rural areas, according to research conducted last year. This is fantastic news for the North East, which is home to some gorgeous rural villages such as Gainford, Corbridge, Staindrop and Escomb. Hence, as a keen investor, it’s worth keeping your eye on properties in places like these.
There is so much evidence to prove that the North East is gaining increased interest from investors. It seems to be bringing a lot of opportunities and is on track for a bright future.