Could the North East become the UK's new buy-to-let capital?

Could the North East become the UK's new buy-to-let capital?

Half as many North East landlords have decided to sell their properties in the past 12 months compared to the rest of the country - so what does this means for the region?

New research from the National Landlords Association shows the number of London landlords looking to sell up has quadrupled since changes to maintenance and mortgage interest relief announced in last year’s Summer Budget left many landlords with higher tax bills.

The number of landlords looking to sell property in the North East rose by just 7% in the same period – 40% lower than the national average rise of 12%.

Figures from ARLA also showed demand for rental properties in the North East rising by 17% between January and February of this year.
House prices in Northern England continue to be less than half those in the South,  with the average North England home costing over £150,000 less than an equivalent property closer to the capital – adding to the region’s appeal to investors.

Ajay Jagota is founder and Managing Director of North-East based sales and lettings firm KIS and had this to say: “There’s already been speculation that tax changes could see 500,000 rental properties sold this year but that doesn’t mean that their owners aren’t going to buy elsewhere – and anecdotally there seems to have been a real uplift locally in enquiries from investors from outside of the region  looking to invest in property in the North East.


There’s no question that the region will become more attractive to investors in the coming months. Not least because the North East’s lower house prices will mean that the 3% rise in Stamp Duty on additional properties introduces last week and Bank of England plans for new affordability tests and stricter borrowing limits for buy-to-let mortgage won’t be so painful in this part of the country.

The return on a typical buy-to-let property in London currently something like 5.2% compared to as much as 7% in somewhere like Gateshead. You get a similar rental yield on a property in Peterlee than you do in London, with the added attraction that you can buy almost five properties there for the price of one in the capital.  

We don’t offer the same capital appreciation as other regions of the UK, but it’s clear that the North East has a lot to offer property investors - and as more competition can lead to lower rents and better homes, they have a lot to offer renters too.”

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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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