Findings suggest that Buy to let Landlord are snapping up more properties in the North East to take advantage of high annual yields and lower purchase prices.
19% of existing Landlords in the North East are looking to buy more homes in this region. The National Landlords Association say that the number of prospective landlords doubled in the last 3 months.
In London and the South East only 5% of existing Landlords plan to buy more homes because of the low yield and high amounts of capital required. With the average deposit required to purchase a house in London or the South East being the amount of money required to purchase a whole property in the North East, it is easy to see why the London and South East market has restricted buyers.
In the North East many families rent their homes so there is a good supply of tenants. Yields are generally 10% plus. Many tenants stay in their rented properties for years, they are looking to build a home. There is an enormous sense of community in the North East, people lookout for their neighbours. People are friendly and interested in other people.
There is also enormous growth with new buildings and companies opening in the North East. A large Amazon centre just outside Durham is in the process of being completed. The old Smiths Crisps factory in Peterlee has been bought by Heather Mills McCartney and will be employing approximately 500 employees making Vegan food. There are plans for a hi-tech business park in Durham at Aykley Heads. Sunderland has been voted as one of the best places to live in the UK having most people that are happy. Sunderland is known as software city locally, supporting in excess of 500 software companies. Scientific businesses are working from an international innovation hub in Newcastle Helix. Sage, Hewlett Packard, Nissan and Caterpillar are just some of the big names that are already established in the North East.
The North East have 5 great universities offering world leading research and extensive collaboration with business.
There are excellent rail links from Durham to London with journey times taking less than 3 hours by rail. International airports offer flights to over 100 destinations including flights to London that take less an hour.
Finally, the North East is a green a beautiful county. Many of its villages and towns are on the coast offering wonderful sea views.
There is little doubt that the North East is buzzing in all sorts of ways and makes for great property investment.