According to a recent report (Click Here to go to the Report) the North East of England remains one of the most affordable areas in the country to buy property. As a consequence the North East represents an outstanding investment opportunity.

The North East also attracts surprisingly high rental figures, together with low property prices, producing yields higher than other areas of the United Kingdom.

The key to success is buying the right property in the right area from the onset. The South of England has not been as rewarding in recent years, properties here have been overvalued due to people paying more than expected. As a result the rental values here have become disproportionately low. This has created a speculative market in the South, people buying and selling quickly trying to make a quick buck.

In The North East there are many opportunities for the property investor. Historically there is a very strong rental culture and tenants tend to remain in rental property for longer. This is a bonus to landlords as it reduces any “void periods.” The North’s investment property tends to give better value, being much cheaper than like for like property further south, again creating higher yields.

There are many justifications for high “renting culture” in The North East:

Job mobility and security

Short term work contracts

Higher divorce rates

Couples living together longer before marriage

1st time buyers struggling to get on property ladder

Higher teenage pregnancy rates.

More transient population.

The overall rental market in the North East is extremely buoyant with a continuous demand. This compares favourably with areas in the South and Midlands in which the market appears to be saturated.

Property values in the UK have risen by an average of 8.5% per annum since 1974. Therefore the long term investor can expect to see this continue because there is a shortage of property throughout the UK. This is due to a decreasing number of starter homes being built and the increased life expectancy of the population. The sale and non replacement of local council housing stock has led to an important role for private landlords in the social housing marketplace.