Newcastle is rapidly becoming a buy to let hotspot, with choices ranging from rooms in new student developments to homes of multiple occupancy and family homes.
The North East region is on the up when it comes to house prices, with healthy growth of 4.8% in the last nine months of 2018. That's hardly a housing boom, although if you're an investor looking for long-term stability, that's not necessarily a bad thing.
Fundamentally, the buy to let market in Newcastle and the North East remains a good bet, with affordable homes still available and a plentiful stock of development projects of the kind we love here at Clarice Carr and Company.
Rental prices in the region are also on the up with Tyne & Wear, which includes, Newcastle, Gateshead and South Tyneside seeing increases of 2-3% in 2018, which is also good news for potential buy to let landlords and property investors.
In a relatively stable market, the key is to add value at the beginnings. That's why the team at Clarice Carr & Company believes that refurbishment projects are the best option for residential property investment in Newcastle and the surrounding area. It's the simplest way to create value and build equity in a buy to let portfolio.
Of course, it would be remiss of me to write any article on buy to let and property investment in 2019 without mentioning the elephant in the room, otherwise known as Brexit. The truth is that while the UK housing market has slowed somewhat, the stability of the North East region limits the prospect of a market correction.
It's also worth remembering that, if you invest the right way with a refurbishment property, your will build in equity of around 15-25% in the property, which gives you a cushion if residential property values should dip temporarily.
History also tells us that the residential lettings market should remain stable, or even buoyant, regardless of conditions in the sales market, largely because people still need to rent, and indeed more people do tend to rend in periods of economic uncertainty. What's more, thanks to the changes brought in by this government, a shortage of rental properties is expected to push property rents up 15% by 2023.
So, right now is a very good time to invest in Newcastle and the North East. The trick to successful residential property investment is to plan properly, find the right property and know how you can add value. If you live outside the region, or simply don't have time to do it yourself, give Clarice Carr & Company a call.
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