Rental Properties in the North East of England offer returns that regularly out perform the rest of the UK, along with low entry costs and rising property prices, so its no suprise that the area remains a top UK hotspot for landlords.
The North East is also one of the fastest-growing economic areas in the UK.
County Durham, which is the area we focus on, is at the heart of the North Easts former coalmining area which had previously effected the areas economy, but large amounts of investment and regeneration is going into the area and new Industrial centres, technology and business parks are being built with companies such as Amazon are moving into the area. and the UK government is delivering on its promise to level up by making County Durham home to the Government's Northern Economic Campus which includes the Treasury Department.
These improvements, among others, have led to an approximate 30% in the number County Durham residents that have joined the waiting list for housing in the past four years as well as people relocating from other areas of the UK due to affordability. An update from Office of National Statistics in March 2026 confirmed that The North East continued to have the highest annual rent inflation rate of all English regions, at 7.6%, in the 12 months to February 2026.
Affordabilty and the move towards remote working have meant that property prices have also increased faster in the North east than most other regions in the last 5 yrs and are extpected to have strong growth going forward.
So while property prices remain relatively affordable compared with much of the country, and England's need for affordable housing remains substantial, investors can acquire high yielding rental properties in the North East at a significantly lower entry price than a low-yielding property in many southern markets.
The Northen Economic Campus was first launched in 2021 by then-chancellor Rishi Sunak as part of the government's Places for Growth initiative.
It hosts staff from HM Treasury, the Department for Education, the Ministry of Housing, Communities and Local Government, and several other departments.
The campus hit the significant milestone of 1000 recruits in the Autumn of 2024, of which more than 80% were recruited locally.
A new five-storey purpose-built government hub is currently under construction in Darlington, County Durham, England and is designed to accommodate more than 1,600 civil servants.
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Amazon has built 3 massive logistic centres in County Durham
Transport links are excellent; London’s King’s Cross Station can be reached in just under 3 hours by train and Newcastle upon Tyne can be reached in just 20 minutes, useful to commuters and those wishing to use Newcastle International Airport. Durham is also right on the A1(M) which is currently undergoing a £220 million upgrade to improve capacity.
Horden train station opened on 29 June 2020, following a £10.55 million investment. This improved connectivity for communities in the area and supported the wider regeneration efforts. The reopening of Horden station was a significant event, as it represents a reversal of rail closures that occurred in the 1960s.
Further development work on the Leamside Line, which runs from Pelaw in Gateshead to Tursdale in County Durham, is set to progress as part of the Northern Powerhouse Rail (NPR) initiative.
Finally, the city of Durham is home to Durham University, one of the top 10 Universities in the Country, a beautiful Cathedral and a Castle, and attractions such as Park which is the biggest Shopping destination in the North-East so it benefits from many tourists each year, as well a healthy student population.
The attraction of the North East is clear; strong rental demand, comparatively affordable property prices and the potential for attractive rental yields, create an investment market with a compelling combination of income and long term growth potential.
Property prices remain relatively affordable compared with much of the country, meaning investors can acquire properties at a significantly lower entry price whilst still benefitting from strong rental demand. This creates an important advantage for investors. The same level of capital required to purchase a low-yielding property in many southern markets can potentially provide access to multiple higher yielding properties in the North East, allowing investors to build a more diversified portfolio and generate greater rental income from their available capital.
Ultimately, investing in County Durham and the North East is about buying into a market where the numbers can work from day one, while retaining the potential for long term capital growth.
At ReadyLet, we have spent more than 20 years investing in the North East ourselves. We understand the different markets across the region, the areas that offer genuine investment potential and the factors that can make the difference between simply owning property and building a successful investment portfolio.
Please give our friendly and knowledgeable team a call to find out more or book a call using the button.
