North East overtakes North West as UK’s buy-to-let hotspot

The North East will experience a buy-to-let boom, overtaking the North West as the best location for UK property investment.

Washington in Tyne and Wear is seen as the best investment hotspot, while Hartlepool, Sunderland and Newcastle are also strong areas.

That is according to the Property Market Forecast from Property Forecaster, part of One & Only Pro, which rated areas based on the proportion of properties highly likely to increase in value.

Akhtar Hussain from said: “The North East has seen rental demand go from strength to strength. Our data now clearly shows a number of locations in the North East are demonstrating strong promise, both in terms of future gains and the highest yields.

“With average Diamond property prices in Washington, Hartlepool and Sunderland of between £48,000 – £53,000, the North East can’t be beaten for value and offers a very accessible investment opportunity with great future potential.

“Property prices in the North East can only go one way from here – they have already started to rise over the last year and recent inward investment in the area will also support future growth. There has never been a better time for investors to look at what the North East has to offer.”

Bootle in Merseyside is now the second-best investment location, while Newcastle-under-Lyme in Staffordshire and Grimsby in Lincolnshire also made the top 10.

Property Forecaster also ranked locations by potential yield. Washington also held the top spot here, with an average 7.9% yield and a maximum of 23.3%.

Hussain added: “In terms of the UK wide picture there is still underlying strength in the market despite the reinstatement of stamp duty and the pending closure of the furlough scheme.

“Although there may be a slowdown in the next couple of months due to seasonality, the next 12 months will remain strong overall. The government has done a fantastic job of preventing a possible housing crash with assistance from the Bank of England reducing interest rates to a record low.

“Our previous predictions that prices would increase in spite of the pandemic, and that Brexit wouldn’t cause a crash in the housing market have been borne out. As the economy recovers over the coming months 2022 continues to look positive for investors.”

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