As Newcastle and the North East continue to thrive, investors are increasingly drawn to Houses in Multiple Occupation (HMOs) due to their high rental yields and strong demand. While Central Newcastle often captures the spotlight, there are numerous surrounding areas offering better opportunities for HMO investments. Let's explore eight such HMO investment hotspots that promise lucrative returns.
Why Central Newcastle is Not the Most Lucrative Location
Central Newcastle, despite its vibrancy and amenities, has become less attractive for HMO investors. High property prices and intense competition have driven savvy investors to explore other parts of the North East. Areas outside the city centre offer more affordable property prices, higher rental yields, and a growing demand among young professionals and students, making them prime HMO investment hotspots.
1. Pelaw
Pelaw is an up-and-coming area with a lot to offer for HMO investors. Its local facilities and excellent transport links make it a convenient and attractive location for tenants.
Local Facilities: Local shops, cafes, and a major supermarket.
Transport Links: Direct Metro connection to Newcastle city centre and Sunderland.
HMO Appeal: Affordable properties and strong rental demand.
2. South Shields
Known for its coastal charm, South Shields provides a unique blend of seaside living and urban convenience. This mix attracts a steady flow of young professionals and students, making it one of the top HMO investment hotspots.
Local Facilities: Beautiful beaches, parks, and a bustling town centre.
Transport Links: Excellent public transport including Metro services.
HMO Appeal: Seaside lifestyle and strong rental demand.
3. Wallsend
Wallsend combines historical significance with modern amenities, making it a sought-after area for renters. Its affordability and connectivity are major draws for HMO investment hotspots.
Local Facilities: Shopping centres, leisure facilities, and Segedunum Roman Fort.
Transport Links: Metro station and proximity to the A19.
HMO Appeal: Affordable property prices and consistent rental demand.
4. North Shields
North Shields offers a vibrant local scene and excellent amenities, attracting young professionals seeking a balanced lifestyle. The area's affordability further enhances its appeal as an HMO investment hotspot.
Local Facilities: Fish Quay, nightlife, and shopping options.
Transport Links: Quick travel via North Shields Metro station.
HMO Appeal: Affordable housing with strong rental demand.
5. Newcastle West
Newcastle West is known for its strong community feel and excellent amenities. The area's affordability and high rental demand make it a prime spot for HMO investment hotspots.
Local Facilities: Parks, shopping centres, and community services.
Transport Links: Excellent bus services and nearby Metro stations.
HMO Appeal: Affordable housing market and high rental demand.
6. Bensham
Bensham offers a family-friendly environment with a range of local amenities. Its affordability and proximity to major transport links make it attractive for HMO investment hotspots.
Local Facilities: Local shops, schools, and parks.
Transport Links: Proximity to major transport routes.
HMO Appeal: Family-friendly area with affordable properties.
7. Jarrow
Jarrow is a historical town with modern amenities, making it a desirable location for renters. Its excellent transport links and affordable housing make it ideal for HMO investment hotspots.
Local Facilities: Historical sites, shopping, and leisure facilities.
Transport Links: Metro connections and good road links.
HMO Appeal: Historical charm and affordable housing.
8. Felling
Felling is an area on the rise, with significant investment in local infrastructure. This development, combined with affordable property prices, makes it a key HMO investment hotspot.
Local Facilities: Growing number of shops, cafes, and recreational areas.
Transport Links: Strong public transport connections, including Metro.
HMO Appeal: Investment in infrastructure and affordability.
Growing Popularity of HMOs Among Young People
The demand for HMOs in Newcastle and the North East is driven by a growing population of young professionals and students. These groups are attracted to the flexibility and affordability that HMOs offer, making the above locations ideal for investors looking to capitalise on this trend. Each of these HMO investment hotspots provides unique advantages that cater to the needs of modern tenants, ensuring high occupancy rates and stable rental income.
About Clarice Carr & Co
At Clarice Carr & Co, we specialise in helping investors find the best HMO investment hotspots in Newcastle and the North East. Our expertise in the local market and dedication to client success ensure that you get the most out of your investment. Whether you are a seasoned investor or new to the HMO market, our team is here to guide you every step of the way. Contact us today to learn more about how we can help you find your next lucrative HMO investment.
Want to know more? Check out our website or get in touch.
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